Question

What should be done to maintain strong cash and working capital reserves amidst declining revenue?

Answer 1

Answer:

In order to maintain strong cash and working capital reserves amidst declining revenue, one should try to do the transaction as much as possible in cash. When there is more than one form of payments methods available in the business, then such methods should be halted for a stipulated time period.

Explanation:

While making the payments, there should be a proper management system to take care of the cash, and handling a lot of cash increases a risk factor of cash being stolen.

Answer 2

Explanation:

If someone is attempting to maintain strong cash and working capital reserves amidst declining revenue, one should slash the rate of transactions through cash. An eloquent management system becomes a priority during the declining revenue to take care of the cash because the cash can be misused in the otherwise. Any alternative method other than cash transaction that is available in the market should be stopped for a given period.