Explain how rapidly expanding sales can drain the cash
resources of a firm. Discuss the relative volatility of short- and long-term
interest rates.
6-1. Explain how
rapidly expanding sales can drain the cash resources of a firm.
6-2. Discuss the
relative volatility of short- and long-term interest rates.
7-1. In the management of cash and marketable securities,
why should the primary concern be for safety and liquidity rather than
maximization of profit?
7-2. Briefly explain how a corporation may use float to its
advantage.
8-1. Under what circumstances would it be advisable to
borrow money to take a cash discount?
8-2. Discuss the
relative use of credit between large and small firms. Which group is generally
in the net creditor position, and why?
8-3. How have
new banking laws influenced competition?
