A Company Wishes to Reduce the Amount of Working Capital

question 28

Multiple Choice

A company wishes to reduce the amount of working capital it requires to finance its operations. Which of the following would be the least effective way of reducing working capital requirements?

• A)Increase the efforts to collect overdue debtor's accounts.
• B)Refuse to sell on credit to any customer.
• C)Offer a discount for early payment by debtors.
• D)Increase the payment time for accounts payable.

Identify and explain the different costs associated with issuing new securities, including direct and indirect flotation costs.

Understand the hierarchy and roles within organizational management.

Identify the importance and applicability of different managerial skills at various management levels.

Grasp the concept and importance of planning in organizational management.

---

Definitions:

Middle Childhood

A stage in human development that typically ranges from about age six to puberty, characterized by the development of social, cognitive, and physical skills.

Social Problems

Issues within a society that are recognized as conditions detrimental to its citizens and are often the focus of social reform or change efforts.

Emotional Problems

Issues or disorders related to the management and expression of emotions, impacting a person's mental health and wellbeing.

Middle Childhood

A developmental phase from around age 6 to 12, characterized by physical, cognitive, and social growth, and an increasing capacity for self-regulation.