1. How does a company's financing strategy impact its operations and performance?

A company's financial strategy and performance directly impact each other. The company can be financially successful by having an effective strategy. Setting goals in order to measure the performance of your financial strategies will define the level of performance you will receive. Ensuring your goals align with your financial performance you can earn a high profit. Financial failures can cause a company to go out out of business, thus a company needs to make sure they can pay employees and suppliers, they need to have the ability to have cash to invest in the business, liquidity to service debts and sustain good creditworthiness.

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