question archive A firms cash position would most likely be hurt by: a - retiring outside debt b - establishing stricter (shorter) credit terms c - increasing the net profit margin d - decreasing excess inventory
A firms cash position would most likely be hurt by: a - retiring outside debt b - establishing stricter (shorter) credit terms c - increasing the net profit margin d - decreasing excess inventory
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A firms cash position would most likely be hurt by:
a - retiring outside debt
b - establishing stricter (shorter) credit terms
c - increasing the net profit margin
d - decreasing excess inventory
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Answer:
(A.) Retiring out side debt will hurt the cash position of the company because company is paying back the money which was taken from the financial institution or from borrowers so the cash position will decrease
For example a company has taken $5million from the bank at present the company cash position is $5mllion after one year company decided to retire (Give back)$3million so the present cash position is decreased by $3million
