Show the motives of maintaining receivables, Financial Management

Assignment Help:

Q. Show the Motives of Maintaining Receivables?

Motives of Maintaining Receivables :-

(i) Sales Growth Motives: - The major objectives of credit sales are to increase the total sales of the business. On being specified the facility of credit customers have shortage of cash may as well purchase the goods. Consequently the prime motive for investment in receivables is sales growth.

(ii) Increased profit Motive: - Because of credit sales the total sales of business increases. Therefore in turn results in increase in profits of the business.

(iii) Meeting Competition Motive: - In business merchandise are sold on credit to protect the current sales against emerging competition. If goods aren't sold on credit the customers may shift to the competitor who allows credit facility to them.


Related Discussions:- Show the motives of maintaining receivables

Call and refunding provisions, Call provision is the right of the iss...

Call provision is the right of the issuer to call back and retire the issued bonds before the maturity date. The issuer may call the bond and retire the bond by paying

Interpolation applications in financial analysis, In financial analys...

In financial analysis, interpolation is used widely in: Determination of internal rate of return of a project. Finding out the yield to maturity (ytm)

What are the types of inventory cost, What are the types of Inventory cost?...

What are the types of Inventory cost? Explain the elements of inventory cost also. Types: 1. Ordering cost    2. Holding cost Elements: 1. Unit cost  2. Reordering

Planning, how to do assignments based on these topics more specifically?

how to do assignments based on these topics more specifically?

What do you mean by synergy, Q. What do you mean by synergy? Synergy: s...

Q. What do you mean by synergy? Synergy: synergy refers to the greater combined value of merged firms than the sum of the values of individual units. It is something like one p

Role of the public expenditure management system, Question : (a) The ro...

Question : (a) The role of the Public Expenditure Management System (PEMS) is to allocate and use resources responsively, efficiently and effectively'. Briefly explain the abo

What are the financial management problems, What are the financial manageme...

What are the financial management problems Traditional approach was challenged was that the treatment was built too closely around episodic events, like incorporation, promotio

Estimate the money in dollars have lost or gained, In January 2010 your fir...

In January 2010 your firm bought from an Italian firm goods payable in Euros worth EU2,000,000.  Suppose that at that time the exchange rate of the Euros was 1EU=$1.25.  Because th

State the exam technique for analysing performance, Exam technique for anal...

Exam technique for analysing performance The below steps must be adopted when answering a question on analysing performance: Step 1    Review figures as they are and commen

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