534 Financial Management

Question 1Medwig Corporation has a DSO of 17 twenty-four hourss . The work along averages 3500 in credit sales each day . What is the order s average account s receivableAnswer / Solution Accounts Receivable geezerhood gross sales Outstanding (Sales / Days 17 (3500 /1 59 ,500Question 2Discuss whatever(prenominal) of the techniques open to reduce essay exposuresAnswerInsurance is one of the simplest and close to available ways to reduce exposure to take chances . It involves the agitate of attempt to a nonher troupe Depending on the amount and constitution of the assay involved , risk retention by self-insurance force not be a practical option , oddly if the follow of hitring the risk (insurance premiums ) is reasonable enough to not play monumental costs . Risk transfer is not do continuously through insur ance , howeverOutsourcing some operations to a phoner who agrees to take on the risk involved is some other fashion model of risk reduction .

Some tasks atomic number 18 best desirable for specialized companies , and large organizations might outsource such activities as customer support , software organic evolution and internal securityDerivative hedging is also an option , depending on the genius of the company . Futures contracts , for example , reduce the risk of price fluctuations in a special(a) commodity , and are very useful to transfer it to a speculator . A company producing commodities would be nefit from this font of hedgeAside from tra! nsferring risks , a company might try to reduce risk by reducing the inherent cause of the risk . quite of hiring a single custodian for cash transfers , a company might hire another one to reduce the risk of employee theftThe locomote method is to avoid the risk all in all . This will completely circumvent possible losings , but it also precludes any possible gains from taking on the riskPAGEPAGE 2...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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