Although Sound Cash Management Principles Call for a Business Owner

question 37

True/False

Although sound cash management principles call for a business owner to keep her/his cash as long as possible, slowing accounts payable too drastically can severely damage a company's credit rating.

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Definitions:

Informal Systems

The unofficial and unwritten ways that an organization operates, including social networks, practices, and norms that influence behavior and decisions.

Organizational Politics

The use of power and social networking within a workplace to achieve changes that benefit the individual or group.

Power Bases

The various sources of influence and authority an individual or organization possesses, which can affect others' behaviors and perceptions.

Powerlessness

A condition or feeling of lacking the ability, strength, or authority to act or influence events or people.