Question: Q-3: Working capital is a critical element in every type of business decision. Finance professionals try their best to manage every component of working capital;

 Q-3: "Working capital is a critical element in every type of

Q-3: "Working capital is a critical element in every type of business decision. Finance professionals try their best to manage every component of working capital; be it cash, accounts receivables, inventory, and accounts payables. In this process, credit policy and collection policy play an important role. After all, the goal of the firm is to ensure the smooth functioning of the business and shareholders' wealth maximization, (a) In view of the above statement, what important quantitative measures can be used to evaluate the collection policy of the firm? (1 Mark) (b) Write down the 5 C's of credit that are generally used by the lending institutions and the suppliers to check the credit health of the company (1 Mark)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!