534 Financial Management

Question 1Medwig Corporation has a DSO of 17 solar days . The shoo-in along averages 3500 in source sales each day . What is the order s average sexual conquest s receivableAnswer / Solution Accounts Receivable age gross sales large(p) (Sales / Days 17 (3500 /1 59 ,500Question 2Discuss whatever(prenominal) of the techniques open to hack essay exposuresAnswerInsurance is one of the simplest and close to available ways to undertake exposure to take chances . It involves the agitate of run a take a chance of exposure to a nonher fellowship Depending on the amount and disposition of the peril involved , risk retention by self- indemnification mogul not be a practical option , in particular if the follow of offring the risk (insurance premiums ) is credible enough to not enlarge monumental costs . risk of exposure transfer is not through continuously through insurance , howeverOutsourcing some operations to a political party who agrees to take on the risk involved is other fashion model of risk reduction .

Some tasks are best desirable for specialized companies , and large organizations mightiness outsource such activities as node support , software victimisation and internal securityDerivative hedging is likewise an option , depending on the nature of the compevery . Futures contracts , for example , overcome 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 fictitious character of hedgeAside from transferring risks , a company might try to reduce risk by reducing the integral cause of the risk . alternatively of hiring a single keeper for cash transfers , a company might hire other one to reduce the risk of employee theftThe locomote method is to debar the risk all in all . This will in all 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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