Green Garden is a cash-only company. The company is considering switching to a 30-day credit policy with no discounts. What factors should the firm consider before making the switch?
What will be an ideal response?
The firm should consider the price it can charge for credit sales, any anticipated changes in sales quantity, and the delay of one-month in collections. There is also no guarantee that payment will ever be received. The firm must also consider their product costs which will still be incurred prior to sale. With the delay in collections and potential need for additional inventory the firm must consider its financing costs as its cash cycle will increase.
You might also like to view...
One way to handle conflict across cultures is by responding to what is going on rather than what you think is going on and clarifying messages by ______.
Fill in the blank(s) with the appropriate word(s).
Denis bought a diamond ring on credit from Pavel as an engagement present for his fiancée. He signed a purchase money security agreement giving Pavel a security interest in the ring until it was paid for. Pavel did not file a financing statement covering its security interest. Denis filed for bankruptcy. The bankruptcy trustee claimed that the diamond ring was part of the bankruptcy estate because Pavel did not perfect his security interest. Pavel claimed that it had a perfected security interest in the ring. Did Pavel have to file a financing statement to perfect its security interest in the diamond ring?
What will be an ideal response?
When MPR professionals offer a story to the media that is newsworthy, this means all of the following EXCEPT that
A) they have something worth covering. B) the story is objective and therefore interesting. C) the medium has an ulterior motive for publishing it. D) it tends to drive audiences to the medium covering the story. E) the story idea contains certain themes that hook audiences.
Which of the following statements concerning retirement plans for the self-employed is true?
I. They can be used by owners of incorporated businesses only. II. With certain exceptions, the same rules that apply to qualified corporate plans apply to retirement plans for the self-employed. A) I only B) II only C) both I and II D) neither I nor II