There is no easy guidance to making the decision of closing a business and what to...

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There is no easy guidance to making the decision of closing a business and what to consider to help the business survive through coronavirus.. The uncertainty around how long this situation will persist increases the complexity of formulating a concise response or decision. But as the impact of the COVID- 19 pandemic continues to heighten, many business owners are faced with making the extremely difficult decision to temporarily close their doors in an effort to survive the effects of this pandemic. It is therefore important that businesses are proactive in assessing their risk and vulnerability from both an operational and a financial standpoint. Persisting in this environment requires business to act decisively to mitigate risks and plan for rapid and slow recovery scenarios and associated impacts on liquidity. COVID-19 directly affects business continuity as business operations reduce, supply chains dry up, and demand plunges. These risks may quickly lead to liquidity risks, pressure on covenants, re- financing requirements, and increasing third party risk. A thorough Cost and benefit analysis could be a helpful way to jumpstart the decision making process. Required: Considering the current business situation and Assuming that you are a consultancy firm of a business faced with this difficult decision, Make a power point presentation to be presented to the owners of the business to help them decide. The presentation must contain the following requirements: A. Identify all revenues that will change as a result of the decision to temporarily shutdown (Relevant revenues). B. Identify all costs that will change as a result of the decision (Relevant costs) C. and Net "B" against "A" the change in revenues. (Assume amounts for this)D. Answer the big question - To temporarily shut down or not? There is no easy guidance to making the decision of closing a business and what to consider to help the business survive through coronavirus.. The uncertainty around how long this situation will persist increases the complexity of formulating a concise response or decision. But as the impact of the COVID- 19 pandemic continues to heighten, many business owners are faced with making the extremely difficult decision to temporarily close their doors in an effort to survive the effects of this pandemic. It is therefore important that businesses are proactive in assessing their risk and vulnerability from both an operational and a financial standpoint. Persisting in this environment requires business to act decisively to mitigate risks and plan for rapid and slow recovery scenarios and associated impacts on liquidity. COVID-19 directly affects business continuity as business operations reduce, supply chains dry up, and demand plunges. These risks may quickly lead to liquidity risks, pressure on covenants, re- financing requirements, and increasing third party risk. A thorough Cost and benefit analysis could be a helpful way to jumpstart the decision making process. Required: Considering the current business situation and Assuming that you are a consultancy firm of a business faced with this difficult decision, Make a power point presentation to be presented to the owners of the business to help them decide. The presentation must contain the following requirements: A. Identify all revenues that will change as a result of the decision to temporarily shutdown (Relevant revenues). B. Identify all costs that will change as a result of the decision (Relevant costs) C. and Net "B" against "A" the change in revenues. (Assume amounts for this)D. Answer the big question - To temporarily shut down or not?

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Answer Slide 1 Title Title Navigating the Decision to Temporarily Close the Business Slide 2 Introduction Introduction to the current business situati... View the full answer