Financial Slack

Financial Slack

Extra money that a company has available in case of a downturn in sales, revenue, or profit. Financial slack may help a company make it through a difficult period. It is the equivalent of a company's savings.
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In both scenarios, they found that corporate social responsibility was more sensitive to increased financial slack than other spending decisions, such as R&D and capital investment.
One example given is that financial slack could be used to buy the assets for the preemption of assets that a first mover can undertake.
After NGOs ended their support for the centres, the government did not take up the full financial slack.
In this case, in the presence of value creating investment projects--including acquisitions--it is important for the firms to have financial slack (or low debt level) in order to take advantage of these investment opportunities (O'Brien, 2003).
For instance, financial slack could help to buy plant and equipment to support the first move in creating a source of advantage based on preemption of assets.
First, it picks up the financial slack for depositors when the banks fail.
With little financial slack for further acquisitive growth and with the takeover talks shelved, Finsbury is looking to grow its market share in the areas it is already strong in - as well as new niche sectors of the baked goods market such as gluten-free produce.
They also maintain significantly higher levels of financial slack, most likely in anticipation of liquidity problems.
As Americans tighten their belts in this slowing economy, they shouldn't forget to look for some financial slack they may already have," NTU Vice President for Policy and Communications Pete Sepp concluded.
But the likelihood of county voters stepping in to pick up the financial slack via an income tax seems remote, a half-dozen elected officials and others from the Eugene-Springfield area and beyond suggested.
If Heppell's job is to promote the most successful Bandits team in history then it is the job of promoter Peter Waite to pick up the financial slack.
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