Primary concerns should your firm make change to credit

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In order to increase sales, the sales manager of your firm is proposing to offer 90 day credit terms rather than 60 day credit terms to customers. As a financial manager which of the following would be one of your primary concerns should your firm make this change to credit terms?

Select one:

a. How you would invest excess cash that is created by the change to credit terms.

b. As receivable collections begin to slow, how much of a negative impact will this change have on the firm's cash on hand?

c. This change would have no effect on the firm's cash position; therefore there is no need to be concerned.

d. The effect this change would have on taxable income.

You are a financial manager for a large Fortune 500 firm, typically the most important financial market for you to follow would be:

Select one:

a. The Money Market

b. The Stock Market

c. The Treasury Market

d. The IPO Market

Ford Motor Company plans to sell stock to build a new plant, the sale of stock would be considered a(n):

a. Primary market transaction

b. Secondary market transaction

c. Initial Public Offering

d. Exchange of physical assets.

Reference no: EM13728676

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