534 Financial Management

Question 1Medwig Corporation has a DSO of 17 twenty-four hourss . The meet along averages 3500 in credit sales each day . What is the order s average account s receivableAnswer / Solution Accounts Receivable days 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 roughly available ways to reduce exposure to take chances . It involves the transplant of gamble to a nonher troupe Depending on the amount and spirit of the find involved , risk retention by self-insurance mogul not be a practical option , particularly if the follow of tape transportring the risk (insurance premiums ) is reasonable enough to not wreak monumental costs . Risk transfer is not do continuously throug h insurance , howeverOutsourcing some operations to a confederation who agrees to take on the risk involved is some other fashion model of risk reduction . Some tasks be best desirable for specialized companies , and large organizations might outsource such activities as customer support , software teaching and internal securityDerivative hedging is also an option , depending on the record 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 benefit from this font of hedgeAside from transferring risks , a company might try to reduce risk by reducing the inherent cause of the risk . kinda 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 losses , but it also precludes any possible gains from taki! ng on the riskPAGEPAGE 2...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper