Questions from Financial Markets

Q: How can processing float be reduced?

How can processing float be reduced?

Q: 1. A firm’s sales decline while it is locked into a

1. A firm’s sales decline while it is locked into a number of fixed cost leases for equipment. What is this an example of? a. Purchasing power risk b. Business risk c. Price risk d. Financial risk...

Q: How can a firm use float to slow down its disbursements?

How can a firm use float to slow down its disbursements?

Q: Why can’t a firm that wants to increase disbursement float simply make

Why can’t a firm that wants to increase disbursement float simply make payments after the stated due date?

Q: How does remote capture reduce float?

How does remote capture reduce float?

Q: Besides lower expenses, explain another advantage of using electronic payments rather

Besides lower expenses, explain another advantage of using electronic payments rather than paper checks.

Q: What is credit analysis? Identify the five C’s of credit analysis

What is credit analysis? Identify the five C’s of credit analysis.

Q: Describe various credit-reporting agencies that provide information on business credit

Describe various credit-reporting agencies that provide information on business credit applicants.

Q: Explain how the cash conversion cycle differs from the operating cycle.

Explain how the cash conversion cycle differs from the operating cycle.

Q: How can a firm control the risk of changing exchange rates when

How can a firm control the risk of changing exchange rates when billing an overseas customer?