EVALUATION OF CASH AND CREDIT MANAGEMENT POLICIES AS AN INSTRUMENT FOR AVOIDING LIQUIDITY AND LIQUIDATIONS

This research work is designed to find out the magnitude to which cash and collectibles bear to the firms total working capital and to discuss as far as possible the extent to which improper management of cash resources and accounts receivable can create illiquidity and a state of insolvency in a business outfit. In conducting the research for this topic, the primary sources of information will be interviews and questionnaire and also secondary sources like text book, Annual reports, journals and periodicals. The appropriate statistical tools will be applied in analyzing the project data. The major problems which I am likely to encounter while doing this research work are: time factor, inadequate funding, anti-research attitude. Apart from all these problems and which must be looked at the time of initiating this research, the research work will be a practicable one if adopt all the techniques above. I hope that when this project has been completed, the problem of untimely liquidation and illiquidity in financial and other sectors of the economy will be a thing of the pasty. In conclusion, therefore, the researcher will suggest how adequate cash and credit management by the financial managers can lead to expansion of the business.