Advantage to corporation of investing in working capital, Financial Management

Assignment Help:

What is the primary advantage to a corporation of investing some of its funds in working capital?

 By investing in working capital a firm acquires the liquidity it needs helping it to pay its bills. The risk of the firm is thus reduced.

 


Related Discussions:- Advantage to corporation of investing in working capital

State the analytical procedures at the planning stage, State the Analytical...

State the Analytical procedures at the planning stage Auditors must apply analytical procedures at the planning stage to help in understanding the entity's business, in identi

Floor Brokers, Floor Brokers These people have the responsibility of ex...

Floor Brokers These people have the responsibility of executing the trades forwarded by the FCMs on the floor of the exchange. They can also trade for their own account. They w

Differences between indirect costs and direct costs, a) Variable costs: Rem...

a) Variable costs: Remuneration of flight attendants, Meals and drinks onboard, Fuel. Fixed costs: promotions and Advertising, Remuneration of administrative staff and Airport c

Secondary market, The secondary market is a market where the investor...

The secondary market is a market where the investor purchases a security from another investor rather than from the issuing corporation. This market is secondary

Describe what is meant by application controls, QUESTION An audit team...

QUESTION An audit team is currently engaged in planning the audit of the financial statements of E Limited as at 30 June 2007. This was the first accounting period during which

Coefficient of determination, Coefficient of Determination As before, ...

Coefficient of Determination As before, Where, We can show that TSS = RSS + ESS We can also show that F = is an F distr

Explain to tr, TR has recently been promoted to his first management positi...

TR has recently been promoted to his first management position. In the past, he very much enjoyed working as part of a team, but is having some difficulty in adapting to his new ro

Equity share valuation.., Mount Hutt Ltd. just paid dividend of $2.20 per s...

Mount Hutt Ltd. just paid dividend of $2.20 per share. The dividends are expected to grow at a constant rate of 4% per year, indefinitely. If investors require an 11% return on Mou

What is working capital, What is working capital? Working capital compr...

What is working capital? Working capital comprise of the current assets of the firm.

Share price, what course a decrease and increase in share price

what course a decrease and increase in share price

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd