(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?

Expert Solution

Rahul Sunny answered 1 year ago

4. i) Does a negative trade balance necessarily mean a sign of a weak economy? Explain...

4. i) Does a negative trade balance necessarily mean a sign of a weak economy? Explain ii) You read in the newspaper that 500,000 workers have lost their jobs in the last month in Zambia. Is this a cause for concern? Explain why it may or may not be?

What does negative interest rate (from the central bank) mean? In theory, how do negative interest...

What does negative interest rate (from the central bank) mean? In theory, how do negative interest rates impact inflation and the economy? (Pros & Cons of having negative interest rate)

What does a negative EC50 mean?

Explain why the absence of bacteria in the food does not necessarily mean the food is...

Explain why the absence of bacteria in the food does not necessarily mean the food is safe to eat.

What does it mean when a bank has a CAMELS rating of 4?

1.HPY is negative does not mean that ending value of the investment is negative Select one:...

1.HPY is negative does not mean that ending value of the investment is negative Select one: True False 2.Nominal Risk Free Rate investment is one which has one possible return which has a probability of 1.0 True False 3.Some types of life insurance policy payments contribute towards increasing the amount of money you have for your retirement years Select one: True False

What does it mean when your schedule has negative float? If you are the Project Manager...

What does it mean when your schedule has negative float? If you are the Project Manager or lead scheduler, what are your options to deal with negative float?

At times we all regret decisions. Does this necessarily mean we did not use the economic...

At times we all regret decisions. Does this necessarily mean we did not use the economic decision rule when making the decision? Research shows that after-school jobs are highly correlated with decreases in grade point averages. Those who work 1 to 10 hours get a 3.0 GPA and those who work 21 hours have a 2.7 GPA. Higher GPAs are, however, highly-correlated with higher lifetime earnings. Assume that a person earns $8,000 per year for working part-time in college and...

Does efficiency necessarily mean equity/fairness? Draw a diagram of an economic pie to illustrate the difference...

Does efficiency necessarily mean equity/fairness? Draw a diagram of an economic pie to illustrate the difference between the two concepts of efficiency and equity. If multiple efficiency points exist, could some be fairer than others? Is equity/fairness always sacrificed when moving from a less to a more efficient point? Talk about winners and losers and compensation.

1) If the bank supervisors find that a bank has low or negative net worth, or...

1) If the bank supervisors find that a bank has low or negative net worth, or is making too high a proportion of risky loans, they can _________. Select the correct answer below: a) force the bank to be sold to a financially healthy bank b) force the bank to close c) require changes to be implemented that reduce risky behaviors d) all of the above 2) After a recession, _____. Select the correct answer below: a) the economy's internal...

Question