Qubeta Uses Permanent Sources of Financing to Cover Its Peak

question 24

Essay

Qubeta uses permanent sources of financing to cover its peak level of current assets.When it does not need the money to finance inventories and accounts receivable, it invests the excess funds in short-term certificates of deposit.What are the advantages and disadvantages of this policy?

---

Definitions:

Cognitive Appraisal

The process by which an individual evaluates and interprets an event or situation, thereby determining its significance and the type of emotional response that is appropriate.

Physiological Arousal

The body's response to stimuli, which may include increased heart rate, respiration, and energy activation, preparing the body for action.

Facial Expressiveness

The degree to which someone visibly shows emotions through facial movements, an important aspect of non-verbal communication.

Parasympathetic Nervous System

A component of the autonomic nervous system that promotes relaxation, healing, and energy conservation in the body.