How can a firm provide a margin of safety if it cannot borrow on short notice to meet its needs?

Related MCQs

• Use of safety stock by a firm would
• Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate non- spontaneous form for financing the excess seasonal current asset needs?
• -Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes total assets to fall below the total longterm financing?
• 80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
• Walter’s Model suggests that a firm can always increase i.e. of the share by
• The type of collateral (security) used for short-term loan is
• Which of the following is not a spontaneous source of short-term funds ?
• A short-term lease which is often cancellable is known as
• _________ function includes a firm’s attempts to balance cash inflows and outflows.
• Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate form for financing a new capital investment in plant and equipment?