European Journal of Business and Management
On the Liquidity Management in Businesses: A Key to Survival and Growth
Abstract
The management of cash no doubts impacts positively on the survival and growth of firms. What is in doubt is the amount of cash to be held by a firm as enough cash to enable the firm stay “afloat”. The objective of this paper is to examine the liquidity management in firms as a key to the survival and growth of businesses. Data from existing literature were collated and used for narrative purposes on liquidity planning and management problems. This paper recommends that good knowledge of cash flow forecasting and budgeting, two key components to financial stability and solvency are essential to growth in business.
Key words: liquidity Management, Cash flow, Survival and Growth, Forecasts, Behavioural Motivations.
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Paper submission email: EJBM@iiste.org
ISSN (Paper)2222-1905 ISSN (Online)2222-2839
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