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When Implementing the Cash Management Strategies, a Firm Should Take

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When implementing the cash management strategies, a firm should take care to avoid having a large number of inventory stockouts, to avoid losing the use of its cash by collecting its accounts receivable using high-pressure collection techniques, and to avoid damaging the firm's credit rating by overstretching accounts payable.


Definitions:

Consumer

An individual who purchases goods and services for personal use.

Sale Under UCC

Transaction of goods governed by the Uniform Commercial Code, a set of laws regulating sales and commercial transactions in the United States.

Payable Cash

Monetary amounts that are due and able to be paid in cash form.

Right To Possess

The legal authority or right to have physical control over something.

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