Discuss the Importance of Putting Contracts in Writing, Both from a Legal

question 128

Essay

Discuss the importance of putting contracts in writing, both from a legal perspective and from a practical business point of view.

---

Definitions:

Cash Cycle

The period it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, often used to assess the efficiency of inventory management.

Accounts Receivable Turnover

A measure of how efficiently a company collects its outstanding credit sales, calculated as sales divided by average accounts receivable.

Accounts Payable Period

The amount of time it takes for a business to pay its suppliers after receiving goods or services, reflecting the company's payment policy towards its creditors.