Discuss the risk-return trade-off experienced in working-capital management
What will be an ideal response?
Working-capital management (involving current asset investment and use of current liabilities) is in effect evaluating
the risk-return trade-off. Investing in current assets reduces the risk of illiquidity at the expense of lowering its overall
rate of return. Using long-term financing increases liquidity while reducing its rate of return on assets.
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Determine the net income of a company for which the following information is available for the month of September. Service revenue$300,000 Rent expense 48,000 Utilities expense 3,200 Salaries expense 81,000
A. $432,200. B. $263,800. C. $171,000. D. $252,000. E. $167,800.
Which of the following would be the best application of principles regarding gift giving to customers?
A) Give gifts before doing business with a customer. B) Determine the gift-receiving policy of the customer's company. C) Once begun, maintain a regular and consistent pattern of gift giving. D) Clearly explain the conditions you expect of the customer who accepts a gift. E) Give a gift proportional to the sale you expect to make from the customer.
A new retail location with high trading-area overlap to an existing location is preferable when _____
a. the primary areas are circular in shape b. the primary trading area is small c. the primary trading area is large d. a retailer may not be able to negotiate a satisfactory lease renewal on the present location
Companies that emphasize innovation and creativity are labeled as ________.
A. fortresses B. baseball teams C. clubs D. academies