Question

Suppose a company receives a windfall of cash. What factors should the board of directors consider when deciding how to allocate the newly found capital? minimum 150 words

Answer 1

The newly found capital can be invested for development activities of organizations. It should be effectively used for areas like innovations, projects or programs which could drive more competitive advantage and also shoild invest on training and development activities of their employees. Investing on employees or the resources are always as asset to the organization as it helps in equip reources more for future business opportunities. Research and development or innovative steps will ensure the sustainability plans for organization . Thus the windfall of cash shoud be invested in the area for the fitrued development.