Question

explain four (4) reasons why companies can use the financial assets to sustain the business during the covid-19 pandemic.

Answer 1

1) The outbreak of coronavirus pandemic has lead to a synchronised meltdown of global markets. Financial assets (liquid assets) such as deposits in checking accounts and saving accounts with banks are greatly limited on return on investment; however impose no restrictions for their withdrawal. The business can use the financial assets to cover the financial emergencies arose due to the pandemic

2) Each and every financial asset is not the same however have a particular goal for the holder and these can be used as per the requirements of the current targets

3) Most of the banks are offering the loans against the financial assets; and the business can use it for making additional investments as per the demand in the market

4) The financial assets which are highly liquid can easily be used to pay the business bills that are vital for survival and thus gives them more security to investors who have parked their funds in the business