Laraine, Who Studied Marketing and Public Relations in College, Reviewed

question 65

Multiple Choice

Laraine, who studied marketing and public relations in college, reviewed numerous articles, studied the new phone thoroughly, and came up with a campaign that received good reviews from her team leaders. Her success in creating a good campaign for the new phone completely on her own reflects her

• A) social consensus.
• B) ability.
• C) proximity.
• D) trust propensity.
• E) morality.

Recognize the financial mechanisms like revolving credit agreements and factoring receivables used to enhance liquidity.

Understand the concept and operational details of the cash conversion cycle.

Identify the reasons for holding cash and the concept of precautionary demand for cash.

Understand how lockbox systems and float management can improve a firm’s cash management.

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Definitions:

Investing Activities

Investing activities are transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.

Net Cash

The difference between a company's total cash inflows and outflows.

Operating Activities

Day-to-day actions that relate to producing goods, providing services, and selling merchandise to customers, which are reflected in a company's cash flows.

Net Cash

Represents the amount of cash remaining after all cash outflows are subtracted from total cash inflows over a specific period of time.