Why is it important to understand and manage net working capital?
What will be an ideal response?
The stock of net working capital is the amount of inventory, cash, and accounts receivable minus accounts payable that the firm must have on hand to run its business. If the business can be run with a lower net working capital, this amount of assets could be given to investors. Conversely, increases in net working capital use after-tax profits that the firm could otherwise use to finance capital expenditures or pay to investors. As such, changes in net working capital are investments that the firm makes in its future profitability.
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When Home Depot stores entered the Canadian market, there were already stores providing similar services and products
To get people to try the Home Depot stores, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use? A) market share B) profit C) competitive effect D) customer satisfaction E) image enhancement
A transportation problem has an optimal solution when:
A) all of the improvement indices are greater than or equal to zero. B) all demand and supply constraints are satisfied. C) the number of filled cells is one less than the number of rows plus the number of columns. D) all the squares are used. E) all origin-destination combinations have been made equally low in cost.