It Has Been Argued That If One Could Perfectly Synchronize

question 86

Essay

It has been argued that if one could perfectly synchronize a firm's cash inflows and outflows,short-term financial planning would be unnecessary. Do you agree?
What actions can the firm's financial decision-makers take to reduce the degree of asynchronization?
Why should this be a concern?

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Definitions:

Monopoly's Product

A unique product or service without close substitutes, offered by a monopolist who faces no competition.

Profit-Maximizing

Refers to strategies or decisions taken by a company to maximize its profits by increasing revenue, reducing costs, or both.

Charge a Price

The act of assigning a monetary value to a product or service that customers must pay to obtain it.

Marginal Cost

is the cost incurred by producing one additional unit of a product or service.