It Is Claimed That to Be Successful,businesses Must Undertake 'Financing';'investing

question 9

Essay

It is claimed that to be successful,businesses must undertake 'financing';'investing' and 'operating' activities.Do you agree? Explain your answer by using your local dairy store as an example.

---

Definitions:

Inventory Carrying Costs

Expenses related to storing and maintaining a company's stock, such as warehousing, insurance, and taxes.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life, representing how much of an asset's value has been utilized.

Collection Policy

Collection Policy outlines the procedures a company follows to collect accounts receivable or outstanding invoices.

Tighter Collection

Refers to the implementation of more stringent policies or practices to accelerate the collection of receivables.