Question

efficiency inventory management is reflected in the liquidity and profitability of the firm - explain

Answer 1

Liquidity management refers to all management decisions and actions that influence the size and effectiveness of liquidity. It emphasizes the mannagemnt of current assets. current liabilities and the relationship  that exists between them. Liquidity management involves planning and controlling current assets and current liabilities in such a manner that eliminates the risk of the inability to meet the due short term obligations.