Leaving Certificate Business Practice Test

The action that is not typically listed as a way to deal with future cash deficits is increasing wages. When a business faces a cash deficit, the primary goal is to preserve cash flow and manage expenses. Increasing wages generally leads to higher operating costs and can further compress cash flow, making it counterproductive when trying to address a deficit.

On the other hand, options like dropping prices of goods, selling investments, or offering discounts to debtors are strategies aimed at quickly improving liquidity in times of financial strain. Dropping prices can stimulate sales volume and increase cash inflow. Selling investments can provide immediate cash that can help cover deficits. Offering discounts to debtors incentivizes quicker payments, also contributing to better cash flow management. These strategies are more aligned with alleviating cash pressures, while increasing wages would add to financial burdens.