Where the firms operate under political anf economic pressures and sufferes from liquidity problem and is intetested in quick recovery of fund than profitability the most suitable method is?
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The most suitable method to recover the liquidity problem of a company is the negotiation of longer payment cycles to the employees.
Explanation:
- Negotiation of longer payment cycles helps the company to pay for their employees in the later time period so that the company can pay their debts without any collision with the payments that should be made to the employees.
- When the employees are paid later the percentage of the dues of the company can be reduced and this helps the company to get recover immediately from the liquidity problems.
To know more:
1) How can the bank face liquidity problem?
https://brainly.in/question/6227973.
2) Wch type of account is typically the MOST liquid?
https://brainly.in/question/3123563
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