[finance] strategies

Question 1

Cash Flow Management

Answer 1

• cash flow statements

- distribution of payments, discounts for early payment, factoring

Question 2

Working Capital Management

Answer 2

• control of current assets (cash, receivables, inventories)
• control of current liabilities (payables, loans, overdrafts)
• strategies (leasing, sale and lease back)

Question 3

Profitability Management

Answer 3

• Cost Controls (fixed and variable, cost centres, expense minimisation)
• Revenue Controls (marketing objectives)

Question 4

Global Financial Market

Answer 4

• exchange rates
• interest rates
• methods of international payment (payment in advance, letter of credit, clean payment and bills of change)
• hedging
• derivatives