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Mamont248 [21]
3 years ago
9

Which of the following BEST describes a company's proper liquidity management?

Business
2 answers:
777dan777 [17]3 years ago
7 0

Answer:

The correct answer is letter "A": Liquidity management is a balancing act; managers try to find liquidity levels that are neither too high not too low.

Explanation:

Liquidity management implies companies lowering their risks. This is achieved by having enough cash to leverage the debts incurred because of the business operations. Especially when it comes to banks, liquidity implies the financial institution possessing enough collateral to offset potential risks of not being returned money loaned.

Naddika [18.5K]3 years ago
4 0

Answer:

A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.

Explanation:

Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.

For example, not keeping too much cash in current account but investing them in interest-earning investment assets.

Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.

Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.

Option D is obviously false and does not describe proper liquidity management.

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Would you prefer to buy an existing business or start from scratch? Why?
vladimir2022 [97]

Answer:

I would start from scratch Because It helps u feel accomplished about your work

8 0
3 years ago
Suppose that you observe a market with four firms, each with about 25% market share. What does it suggest about the following at
Nostrana [21]

Answer:

It suggests that they are not doing anything competitively different.

Explanation:

Network externalities if well harnessed should bring about an increase in end users satisfaction and value derived.

Multi housing costs, ordinarily, and when taken as a whole, should results to an overall minimization of the total costs. Economics of scales and other resources are centrally allocated here, and the effect should be a gain to the entity.

Level of differentiation across firm's offerings - products or services, signals the procedures an organization adopt to mark the uniqueness of their products or services. It shows how distant they are among the other varying sets.

Thus, from the case given, the four firms have the same share of the market - 25%. The implication is that as far as we are concerned, their level of activities and postures in the market is same and/or similar. This ultimately cuts across the network externalities, multi housing costs and the level of differentiation of firm's offerings. They are thus not competitively different.

5 0
3 years ago
You're in a conference room with Javier and Jim, an assistant director who reports to you. The other three people in the room, i
Ivahew [28]

Full question:

You are a manager at Leland Enterprises, a transportation

company, and work in the headquarters building. You report to the director, Javier.

Javier is known around the office as a hothead--quick to anger, slow to praise anyone. He tends to demean people publicly when he thinks their work is substandard, which is just about all the time. He has a weak spot for doughnuts, which seem to make him happy, so you and your coworkers regularly bring in sweets to, as you say, "appease the monster." Javier is favored by upper management for his decisiveness and strong ability in business analytics, which have led to strong corporate results. Upper management is hands-off toward Javier's management of his team. As a result, turnover is quite high as employees realize they can either adapt to his environment or leave, but not change it much.

Decision Point: Javier's Goals

You're in a conference room with Javier and Jim, an assistant director who reports to you. The other three people in the room, including your friend Emily, report to Jim.

Javier ends the meeting by saying, "So that's just the way we do things around here." One of your employees asks, "Could you tell me a bit of detail about our projection goals?" Javier responds, "No, you all know enough—you do your jobs and let me work out the details. This meeting is over. Turn to your neighbor and give our secret GIMME handshake." People jostle, rolling their eyes, and perform a middle-school-type crazy handshake.

In what ways do you see the organizational culture of Leland Enterprises transmitted?

Select the best options from the choices below and click Submit.

Ethics

Innovation

Symbols

Stories

Socialization

Language

Rituals

Answer:

Rituals

Explanation:

Corporate rituals are demonstrated in the example above. They may be repetitive sequences that could take the form of habits or ceremonies that express and reinforce the values of the organization such as what goals are most important, and which people are important and which ones are superfluous. This is seen when the manager asks to give the Gimme shake.

5 0
3 years ago
An order for 50 units of product a and 60 of b has been placed. there are currently 25 units of product b on hand. each a requir
love history [14]

To determine the net requirement for c, we determine first the number of c’s that are required for the production of a and b given that there are already 25 units of b available.

 

<span>   Number of c needed = (50 units of a)(2 c/unit of a) + (60 – 25 units of b)(5 c/unit of b)</span>

<span>      Number of c needed = 275 c’s</span>

 

There are currently 160 units of c; hence,

 

<span>   Net requirement for c = 275 c – 160 c</span>

<span>    Net requirement for c = 115</span>

 

<span>Answer: 115</span>

5 0
3 years ago
Scenario:
Verizon [17]
The correct option is B.
A tariff is define as the tax which is levied on imported goods in order to make them more expensive. Government usually levy tariff on imported goods in order to make them more expensive than the goods that are produce locally. This is done in order to encourage consumers to buy more of locally made goods than imported goods. Buying more of locally made goods improves the local industries and improve the country's GDP.<span />
6 0
3 years ago
Read 2 more answers
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