Short terms working capital, Financial Management

Assignment Help:

Q. Short terms working capital?

1) Indigenous bankers: private money leased and other country banking used to be the only source of finance prior to the establishment of the commercial bank they used charge every high rate of the interest and exploited the customer to the largest extent is possible . now a day with the develop of commercial bank they have lost their monopoly . but every today some business house have to depend on the indigenous bankers for obtaining loans to ,meet their working capital requirement

2) trade creditors: trade creditors refers to the credit extended possible Interest. The firm may lose sales also because of shortage of stock and tight credit policy of the firm. Thus there is a cost of illiquidity which increases with the less and less level of current assets. The optimum level of current assets can be determined by balancing the cost of liquidity and the cost of illiquidity. The optimum level is the point where the total cost is the minimum.


Related Discussions:- Short terms working capital

Determine the financial requirements of the business, Q. Determine the fina...

Q. Determine the financial requirements of the business ? Decisive the Financial Needs: - The initial task of the financial management is to estimate and determine the financia

Finance company vital role in investment intermediaries, How is the finance...

How is the finance company play a vital role in investment intermediaries? Finance companies: Finance companies make loans to corporations and individuals by giving consu

Valuing semi-annual cash flows, In all previous illustrations, we ass...

In all previous illustrations, we assumed that coupon payments are paid on annual basis. However, most of the bonds carry interest payment semi-annually. Semi-ann

Business organization, what business organization do you preffer ? service ...

what business organization do you preffer ? service concern,trading concern or manufacturing concern

Objective of wealth maximization, Q. The main rationale for the objective o...

Q. The main rationale for the objective of wealth maximization is that it shows the most efficient use of the society's economic resources and therefore leads to a maximization of

Define the term- future cost and historical cost, Define the term- Future C...

Define the term- Future Cost and Historical Cost Future cost of capital refers to expected cost of funds to be raised to finance a project. In contrast, historical cost signifi

Risk of portfolio if asset of low correlation are combined, What happens to...

What happens to the riskiness of a portfolio if assets with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk reli

Explain the term stakeholders, Explain the term StakeHolders The range ...

Explain the term StakeHolders The range of stakeholders may comprise directors/managers, lenders, shareholders, employees suppliers and customers. These groups are probable to

Discuss the different forms of financing, Question 1 Explain the concept ...

Question 1 Explain the concept and phases of capital budgeting Question 2 Define and explain the methods of demand forecasting Question 3 Mention the elements o

Firms operation and financing decision, Q. Firms operation and financing de...

Q. Firms operation and financing decision? Firms operation and financing decision risks or the variability of returns also results for the decision make within the company. Ris

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd