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Massive disaster in business

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"If the company decides to endorse a partial retention program there must be available funds to cover the cost of the loss before the remainder is transferred to insurance. Many times the funds for these items can come from their current cash flow or reserve funds set aside for these events. In the example given the damaged inventory is frequent and has become more predictable so the monetary assets should be factored into their monthly budget. "

What would be the impact to a company if they have to use cash on hand to cover a massive disaster in their business?

Reference no: EM133055734

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