Describe Any One Reason for Using an EIS

question 87

Essay

Describe any one reason for using an EIS.

Identify the consequences of government interventions such as price ceilings and price floors.

Describe the characteristics and determinants of market equilibrium.

Explain the law of supply and the law of demand.

Understand the relationships between prices and quantity demanded or supplied.

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Definitions:

Cash Discounts

An incentive offered by sellers to buyers for early payment of invoices, aimed at encouraging prompt payment and improving cash flow.

Short-term Financial Policy

Pertains to strategies and decisions related to managing a company’s current assets and liabilities to ensure liquidity.

Flexible Short-term Policy

A financial strategy that allows for maintaining a higher level of current assets, providing a buffer against unforeseen liabilities or expenses.

Restrictive Short-term Policy

A financial policy aimed at minimizing the amount of working capital to reduce short-term financing costs, often at the risk of running low on liquidity.