What are the different techniques used by a business to increase cash inflow and decrease cash outflow?
What will be an ideal response?
There are several simple methods that can be used to increase the amount of cash flows while simultaneously reducing the effects of irregular or seasonal patterns of receipts. Five proven techniques are:
1. Taking deposits and progress payments.
2. Offering discounts for prompt payment.
3. Asking for the money.
4. Taking on noncore paying projects.
5. Factoring receivables.
There are two factors of cash outflows that must be controlled:
(1) the amount of cash being paid out and (2) the timing of cash being paid out. Controlling the amount of cash being paid out is primarily a function of making good purchasing decisions and avoiding waste. Every business that maintains inventory has an optimal level that minimizes the total cost of (1) carrying inventory, (2) processing orders, and (3) losing sales due to being out of stock.
In addition to making wise purchasing decisions and avoiding waste of resources, there are several strategies that will provide savings in cash outflows, including:
1. Trade discounts.
2. Noncash employee incentives.
3. Use of temporary agencies.
4. Consignment.
5. Barter.
6. Control of the timing of paying out cash.
7. Negotiation of terms with suppliers.
8. Timing of purchases.
9. Gaming of the payment process.
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a. True b. False Indicate whether the statement is true or false
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a. Maintaining brand loyalty b. Maintaining brand value c. Maintaining brand image d. Maintaining brand promise
If the final registration statement contains a material misstatement or omission, the purchaser of the security can recover damages from
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