Businesses often make lump sum payments for acquisitions, partnerships, or vendor contracts. Such payments help streamline financial transactions and reduce long-term liabilities. However, they also impact cash flow and require strategic financial planning. Companies must assess liquidity, investment returns, and tax considerations before making a lump sum payment. Effective planning ensures that lump sum payments contribute to business growth rather than financial strain.
https://joinotto.com/tax/lump-sum-payments
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