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Essay text:
Companies that do not value cash management as an important issue are probably undermining the company's short-term stability, and its long-term survival.
Short term financing is not ideal for all kinds of capital shortfalls; generally, short term debt should fund business activities that will generate cash flow to repay the loan. Business people need to distinguish between a temporary investment in current assets and a permanent investment. With temporary investments, companies can finance the purchase of the asset with the intent of liquidating the asset in the normal course of the business...
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