What is the hedging principle or principle of self-liquidating debt?
What will be an ideal response?
The hedging principle, or principle of self-liquidating debt, involves matching the cash-flow-generating
characteristics of an asset with the maturity of the source of financing used to fund its acquisition.
For example, a seasonal expansion in inventories, according to the hedging principle, should be financed with a
short-term loan or current liability. The funds are needed for a limited period, and when that time has passed, the cash
needed to repay the loan will be generated by the sale of the extra inventory items.
Obtaining the needed funds from a long-term source (longer than 1 year) would mean that the firm would still have
the funds after the inventories they helped finance had been sold. In this case the firm would have "excess" liquidity,
which it would either hold in cash or invest in low-yield marketable securities until the seasonal increase in
inventories occurs again and the funds are needed. The result of all this would be lower profits.
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List and briefly describe the Big Five personality factors.
What will be an ideal response?
Jose was getting ready for his first performance evaluation at his new company. The room where the evaluation was to take place was cramped and dimly lit. He was uncomfortable and this highlighted his nervousness. Though he had prepared for an open, honest discussion with his supervisor, he found himself to be more defensive when he was confronted with constructive feedback. What element of the importance of human communication in business and professional contexts does this example illustrate?
a. Communicators are impacted by their previous communication experiences. b. Role-taking is critical to the success of business and professional communication. c. Feedback is critical to the success of business and professional communication. d. Physical surroundings influence communicators.
A corporation probably does not know who owns its coupon bonds
Indicate whether the statement is true or false
Why is understanding the Web-Star product absolutely essential for a salesperson who uses adaptive selling to sell the teleconferencing software?
A) The salesperson must know the product completely to be able to persuade prospects to purchase it. B) The salesperson must know the pricing schedule for all products and volumes of sales to give a quote instantly to an interested prospect on the phone. C) The salesperson must understand the ins and outs of the product to be able to quickly reevaluate the best configuration for a prospect based on new information from the prospect. D) The salesperson must know the product to be able to point out the flaws in competitor's teleconferencing software to prospects. E) The salesperson must know all about the product to be able to explain all the features during a presentation.