Questions from Financial Management

Q: What are the benefits of the JIT inventory control system?

What are the benefits of the JIT inventory control system?

Q: What are the primary requirements for a successful JIT inventory control system

What are the primary requirements for a successful JIT inventory control system?

Q: Companies with rapidly growing levels of sales do not need to worry

Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the firm. Do you agree or disagree with this statement? Explain.

Q: What happens when a bank charges discount interest on a loan?

What happens when a bank charges discount interest on a loan?

Q: What is trustworthy collateral from the lenders’ perspective? Explain whether accounts

What is trustworthy collateral from the lenders’ perspective? Explain whether accounts receivable and inventory are trustworthy collateral.

Q: Trade credit is free credit. Do you agree or disagree with

Trade credit is free credit. Do you agree or disagree with this statement? Explain.

Q: Banks like to make short-term, self-liquidating loans

Banks like to make short-term, self-liquidating loans to businesses. Why?

Q: What is a Treasury bill? How risky is it?

What is a Treasury bill? How risky is it?

Q: What are compensating balances and why do banks require them from some

What are compensating balances and why do banks require them from some customers? Under what circumstances would banks be most likely to impose compensating balances?

Q: What are the pros and cons of commercial paper relative to bank

What are the pros and cons of commercial paper relative to bank loans for a company seeking short term financing?