Which of the following can help improve a business's financial health?

Negotiating staggered payments with creditors is an effective strategy for improving a business's financial health. This approach can help manage cash flow more effectively by allowing the business to space out its obligations over a more extended period. When a company secures staggered payments, it can optimize its resources, ensuring that it has enough cash on hand to cover operational expenses, invest in growth opportunities, or address unforeseen circumstances. This supports financial stability and can lead to better relationships with creditors due to timely payments.

In contrast, increasing short-term debt may place additional strain on the business, as it could lead to higher interest payments and lower liquidity. Holding back on sales can hinder revenue generation, directly impacting the cash flow needed to meet operational costs. Reducing profits is detrimental to any business, as it undermines growth potential, affects investor confidence, and can escalate financial problems if not addressed appropriately. Thus, negotiating staggered payments is a proactive measure to enhance financial health by improving cash flow management.