Rate this paper
  • Currently rating
  • 1
  • 2
  • 3
  • 4
  • 5
5.00 / 4
Paper Topic:

Watree Lodge and Greenville Restaurant Concept Checks

Watree Lodge and Greenville Restaurant Concept Checks

Operating capital of a business is the most important of its entire components and hence a manager 's possession of the required knowledge on how to manage this capital is equally important for the general success of that business

According to Lesonsky (1998 , business working capital refers to the difference between its current assets and current liabilities . In a simple business language , it is the amount of cash needed to run the activities of the business effectively . As the most important business asset , cash

will provide the management of Watree Lodge with liquidity and buying power . To achieve this , the management of Watree Lodge should be able to control the cash flow . This can be done through preparation of cash budgets that will enable them to manage cash inflows and outflows . When prepared well and in time , the cash budget will help the management know whether the business has enough cash to meet its financial obligations . i .e . the objective of cash forecast is to alert the management about possible shortfall in cash or surpluses . This will in turn help the management make informed decisions on whether to invest or to borrow in advance . In order to realize this , the management should consult with all stakeholders including business managers as well as possible suppliers

Greenville Restaurant operates two bank accounts where one earns an interest while the other does not earn interest . Evidently , the management is losing a lot of revenue due to...

Not the Essay You're looking for? Get a custom essay (only for $12.99)