Innovations in Risk Management Futures contract a contract to buy or sell a stated commodity or financial claim at a specified price at some specified future time
Accounts receivable Management Size of Investment in Accounts Receivable Percent of credit sales to Total sales Level of sales Terms of sale Quality of customer Collection Efforts
Liquid asset management S CASH- motives for holding casha Transactions: to meet cash needs that arise from doing business. Precautionary: having cash on hand for unexpected needs Speculative: to take advantage of potential profit-making situations
Working-Capital Management Current assets cash, marketable securities, inventory accounts receivable Long- Term Assets equipment, buildings, land Which earn higher rates of return? Which help avoid risk of illiquidity?
