What Considerations Should Managers Have While Deciding on Firms' Capital

question 63

Essay

What considerations should managers have while deciding on firms' capital structure?

Appreciate the role of social and cultural factors in emotional expression and motivation.

Understand the concept of disbursement and collection float and their impacts on a firm's cash management.

Identify the components and strategies that affect collection float.

Recognize the significance of electronic transactions and their influence on reducing collection and disbursement floats.

---

Definitions:

Cash Refunds

Payments returned to purchasers in cash, typically due to returns, overpayments, or as a reward for loyalty or incentives.

Cash Receipts

The total amount of cash collected by a business from all sources during a given period.

Bank Deposits

Funds that individuals or entities place into a banking institution's account for safekeeping, which can include savings, checking, and time deposits.

Cash Account

An account that records all transactions involving cash inflows and outflows for a company.