Questions from Financial Management

Q: Explain how a firm determines the optimal level of current assets.

Explain how a firm determines the optimal level of current assets.

Q: What are the risks associated with using a large amount of short

What are the risks associated with using a large amount of short-term financing for working capital?

Q: What are the advantages and disadvantages of the aggressive working capital financing

What are the advantages and disadvantages of the aggressive working capital financing approach?

Q: What is the most conservative type of working capital financing plan a

What is the most conservative type of working capital financing plan a company could implement? Explain.

Q: What is working capital?

What is working capital?

Q: What is accumulated depreciation?

What is accumulated depreciation?

Q: What is the primary advantage to a corporation of investing some of

What is the primary advantage to a corporation of investing some of its funds in working capital?

Q: Can a corporation have too much working capital? Explain.

Can a corporation have too much working capital? Explain.

Q: What are the primary reasons that companies hold cash?

What are the primary reasons that companies hold cash?

Q: Explain the factors affecting the choice of a minimum cash balance amount

Explain the factors affecting the choice of a minimum cash balance amount.