Question

what is the most important asset a business can have?

Answer 1

Most important asset the business can have is cash and it is always said at the cash is the king and the business which is having a higher amount of cash in its hands will be having a advantage always as cash will be offering them with more amount of flexibility and it will also help them in order to have an additional mode of financing.

Businesses which have a higher amount of cash in its hands will also be preferred by the landing organisation and they will be provided with loans very easy and they will be having a very high creditworthiness and flexibility in their hands in order to maximize their rate of return

businesses which have a higher amount of cash flows are also able to negotiate better with the changing economic conditions and they can also help themselves avoiding any kind of business collapse, so they will always be having the liquidity and the flexibility in their hands in order to take important decisions and maximize their rate of return.

Hence, it can be said that cash is the king and those businesses which have a higher amount of cash on their hands and if they have a better utilisation capacity and a higher return on assets generation capability then they will always be having a competitive edge.