Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The requirement for working capital fluctuates according the level of inventory, production, debtors and creditors etc. The working capital needs are not uniform during the year because of the seasonality of the product being manufactured and business cycles. Separately from this, the working capital requirement would also base upon the demand of the product and demand-supply condition of the raw material. Relationship of all these variables would find out the requirement for working capital at any time.
Under situations where the working capital requirement is decreased, it results in excess cash. Such excess cash may be required while the demand picks up. The firms might hold this surplus cash as buffer to meet unpredictable financial requirements. As this excess cash doesn't earn any return the firms may invest such cash balance in marketable securities and another investment avenue.
Because this excess cash balance is obtainable only for a short period of time, this should be invested in liquid securities and highly safe. The three fundamental features: safety, marketability and maturity must be kept in mind whereas making investment decisions regarding temporary excess cash. Now safety implies that the default risk that is: payment of interest and principal amount on maturity must be minimized. As the prices of long-term securities are more sensitive to interest rate modifications as compared to short-term securities the firms must invest in securities of short-term maturity. Marketability termed as convenience, transaction and speed cost along with that security or an investment can be converted in cash.
Consortium Lending: As the financial needs of a single unit are more than a single bank can cater to, then more than one bank comes together to finance the unit jointly spreading
Explain what is meant by traditional costing system. Support with example.
What is meant by the term Open Book Management? How does Open Book Management improve the organizations ability to achieve and improve results?
The CP introduced in the Indian financial market, for the recommendations of the Vaghul Committee has turn into a well-liked debt instrument of the corporate world. Commercial Pape
using the operating cycle and any other financial management knowledge,discuss the applicabilty of such cycle to poultry
Absolute liquid ratio - Liquidity ratios Although receivables debtors and bills receivable are usually more liquid than inventories yet there may be doubts regarding their rea
Assignment help
ABC System and service organizations The ABC system has been taken up as applied to a manufacturing organizations with the same efficiency. One basic characteristic of service
Explain the terms - maintenance and improvement Maintenance ; under the maintenance function, the management must first establish policies rules directives and standard operat
Markov Properties 1) Transition probabilities are dependent only on the current state of the system i.e. provided that the current state is recognized; the conditional probabil
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd