Every cooperative board of directors is charged with both protecting and utilizing the resources of the cooperative for its members. This simply stated prime directive is far from a simple task.
Balancing the needs of the member with the needs of the cooperative’s balance sheet is a tricky proposition at best. Establishing margins to cover actual costs along with additional net savings that will allow for future growth of services can be difficult, but past performance – together with reasonable expectations and realistic optimism – should drive financial projections.
With the help of the cooperative’s management, boards develop and approve business plans that will meet the organization’s goals. Most planning cycles are conducted annually, creating a budget that anticipates surpluses. New projects offering better services or products are financed along with long-term financing, either with new injections of capital or long-term borrowings. Unrealistic long-term financing projections can seriously interrupt the monthly and daily operations of a cooperative, therefore, understanding how current assets and liability affect the cash to cash cycle is a critical piece of knowledge that any board member needs. Current assets consist of cash, inventories and accounts receivable. Current liabilities include accounts payable for goods and services and the current portion of long or immediate term debt.
Answer: Option D
Explanation:
A. As per the case Tyler has been going out to parties at his own will so it is not an outward conflict.
B. In the given case Tyler has no extra duties to perform so we cannot say he is suffering from overload.
C. As per the given case we cannot say he is having unhealthy food because no such statement in the given case evident that.
D. Tyler has been inconsistent as he always chooses party over practice, his behavior has been careless towards his goals.
