Question

“Businesses from all walks of life are haemorrhaging cash as the COVID-19 pandemic sweeps the globe.” This statement is mentioned in the required reading, explain what the statement above means in terms of its impact on ‘cash flows’ to be generated from operating, investing and financing activities. You may use a relevant example from your own community to answer this question and supported with evidence from the required reading.

Answer 1

Answer:

Effect of COVID-19 on Businesses  

Explanation:  

• The worldwide economy has managed an extreme blow because of the Covid-19 pandemic. Numerous organizations everywhere throughout the world have been in a free-fall since March.

• This is because of the isolate measures requested by a few governments causing business shutdowns, travel limitations, lost income, staff cutbacks and disturbed flexibly chains.

• Vulnerability about the flare-up's direction remains the greatest snag in envisioning any indications of recuperation. Organizations from varying backgrounds are discharging money as the COVID-19 pandemic breadths the globe. Receivables are being postponed, stock is stale, crude materials are not acquired, producing is slowed down, staff are laid off, no deals of prepared great, so there is no inflow of money into any business.

• Government boost installments are relied upon to keep monetary action ticking during this hibernation period, giving some expectation.