Working Capital Management: Unlocking Trapped Cash
5 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

When a company needs additional funding, what are the traditional sources of funding that the treasurer typically considers?

  • Equity issuance and cash extraction
  • Working capital management and equity issuance
  • Debt and equity issuance (correct)
  • Debt and working capital management

    • Why might a treasurer explore working capital management as a funding source?

  • Because it is a quick way to raise funds
  • Because it is a long-term investment strategy
  • Because the cost of traditional funding sources is too high (correct)
  • Because it is a cheap source of funding

    • What is a potential benefit of working capital management?

  • Decreasing the company's equity
  • Increasing the company's debt
  • Reducing the company's sales volume
  • Unlocking a significant source of cash (correct)

    • How does working capital tend to change when corporate sales volume changes?

    <p>It varies with changes in corporate sales volume</p> Signup and view all the answers

    What is involved in working capital management?

    <p>A considerable amount of tactical work on an ongoing basis</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser