(a) If a business has a negative bank balance does it necessarily mean that the business...

(a) If a business has a negative bank balance does it necessarily mean that the business is unprofitable and will become insolvent? Explain. (
(b) Which is better for a normal business: Allowing payment terms of 60 days after invoice for your debtors or giving a 5% discount for payment within 7 days after invoice? Explain why?
(c) Explain using a simple example with figures, how the granting of sales discounts can affect the profitability of a business.
(d) What 3 key business parameters would you address to increase the profitability of a business? How would you adjust these parameters?

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Rahul Sunny answered 1 year ago

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