Questions from Managerial Finance


Q: What factors make managing inventory more difficult for exporters and multinational companies

What factors make managing inventory more difficult for exporters and multinational companies?

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Q: What is the role of the five C’s of credit in the

What is the role of the five C’s of credit in the credit selection activity?

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Q: Explain why credit scoring is typically applied to consumer credit decisions rather

Explain why credit scoring is typically applied to consumer credit decisions rather than to mercantile credit decisions.

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Q: What are the basic tradeoffs in a tightening of credit standards?

What are the basic tradeoffs in a tightening of credit standards?

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Q: Why are the risks involved in international credit management more complex than

Why are the risks involved in international credit management more complex than those associated with purely domestic credit sales?

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Q: What is the relationship between the predictability of a firm’s cash inflows

What is the relationship between the predictability of a firm’s cash inflows and its required level of net working capital? How are net working capital, liquidity, and risk of insolvency related?

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Q: Why does an increase in the ratio of current assets to total

Why does an increase in the ratio of current assets to total assets decrease both profits and risk as measured by net working capital? How do changes in the ratio of current liabilities to total asset...

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Q: What is the difference between the firm’s operating cycle and its cash

What is the difference between the firm’s operating cycle and its cash conversion cycle?

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Q: Ann and Jack have been partners for several years. Their firm

Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concern...

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Q: Why is it helpful to divide the funding needs of a seasonal

Why is it helpful to divide the funding needs of a seasonal business into its permanent and seasonal funding requirements when developing a funding strategy?

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