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Financial distress could lead to bankruptcy when a corporation begins to acquire a significant amount of debt. In certain cases this may cause the managers to take on extra responsibilities. A number of possibilities will be altered and configured in order to achieve several possible scenarios of the company, the market and the economy. A firms operating exposure is determined by the structure of the markets and the firms ability to mitigate the effect of exchange rates by adjusting its markets, product mix and sourcing (Brealey, Myers and Allen, 2005).
This paper will make suggestions on how Lawrence Sports can develop a plan to maximize working capital policy and a cash budget...
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