Question
In: Finance
In an early stage business, what do you believe would be your working capital philosophy; (1)...
In an early stage business, what do you believe would be your working capital philosophy; (1) a liberal credit and collection policy to get as many customers in as possible or (2) a strict credit and collection policy to take very good care of precious working capital? Would your opinion be different if the company was funded out of your pocket or funded by a professional investment firm like Private Equity?
In a later stage business, what believe would be your working capital philosophy; (1) paying bills as soon as they come in the door to maximize vendor relationships and goodwill or (2) paying bills on he last possible day to maximize cash on hand and working capital? Would your opinion be different if the company was funded out of your pocket or funded by a professional investment firm like Private Equity?
In general in business, what do believe would be your working capital philosophy; (1) keeping a broad array and as much inventory on hand as possible to make sure that you never miss a sale or (2) stocking only a few items and maximizing the inventory turnover?
Solutions
Expert Solution
In an early stage business, what do you believe would be your working capital philosophy; (1) a liberal credit and collection policy to get as many customers in as possible or (2) a strict credit and collection policy to take very good care of precious working capital?
Answer: (2).
Would your opinion be different if the company was funded out of your pocket or funded by a professional investment firm like Private Equity?
No, the source of capital will not make the opinion differ.
In a later stage business, what believe would be your working capital philosophy; (1) paying bills as soon as they come in the door to maximize vendor relationships and goodwill or (2) paying bills on he last possible day to maximize cash on hand and working capital?
Answer: (2)
Would your opinion be different if the company was funded out of your pocket or funded by a professional investment firm like Private Equity?
No, the source of capital will not make the opinion differ.
In general in business, what do believe would be your working capital philosophy; (1) keeping a broad array and as much inventory on hand as possible to make sure that you never miss a sale or (2) stocking only a few items and maximizing the inventory turnover?
Answer: [2]
jeff jeffy answered 2 years agoRelated Solutions
In an early stage business, what do you believe would be your working capital philosophy; (1)...
Do you believe in the trickle-down philosophy?
How would you go about estimating the cost of capital for a new, early stage or...
What is working capital and how do businesses use working capital to manage a business?
What do you believe would be the most effective strategy in working with juveniles? Explain why.
Discuss your personal philosophy concerning the Role of Government in our society. DO you believe in...
Which qualitative method(s) do you believe would be ideally suited to use at each stage of...
1. What do you believe would be the best choice for a tax system in the...
what would spirituality be according to your own workplace. how do you believe that your conception...
What do you believe would be the short- and long-term effects of your policies on both...
- The files SpeedControl.java and SpeedControlPanel.java contain a program (and its associated panel) with a circle that...
- Calculate the ideal age of a spouse. Enter either m or f from the keyboard in...
- Due to a recession, expected inflation this year is only 4.75%. However, the inflation rate in...
- What are the benefits of doing a pilot program before a full scale rollout of a...
- It is a calm summer day in southeast Iowa at the Ottumwa air traffic control radar...
- 1. Write a detailed article on Evolution of attacks on the internet & web [your article...
- Analyze the role of the contingency plan coordinator (CPC) in the scope of preparing a BIA....