What is the advantage and disadvantage of a restricted stragegy for working capital for accounts receivable
Answers
Answer:
One of the advantages of working capital is that you have more flexibility, enabling you to satisfy your customers' orders, expand your business, and invest in new products and services. It also provides a cushion for when your company needs a bit of extra cash.
Answer:
One of the advantages of working capital is that you have more flexibility, enabling you to satisfy your customers' orders, expand your business, and invest in new products and services. It also provides a cushion for when your company needs a bit of extra cash.
Disadvantages of working capital:
Leads to late payment to the suppliers.
Increases the threat of bankruptcy and liquidation.
Increases the customer debt.
Leads to significant consequences for your company.
Explanation:
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