Business Administration 1220E Lecture Notes - Lecture 14: Ge Capital, Accounts Payable, Sensitivity Analysis

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Trina Ruthes

Document Summary

Business 1220e- lecture 14- 4 c"s of credit and sensitivity analysis (clark carriers ltd. ) In the low scenario, the company rquires more than their ,000 credit limit, however the company needs less than the,000 credit limit in the high scenario. Since the low scenario of 30% of revenues is the more realistic projection, it poses a risk as they would need a larger loan than the one that was requested. This case does not involve seasonality and thus a seasonality analysis is not required. The only problem to extending the age of accounts payable would be it would frustrate suppliers, however giving a heads up or negotiating can resolve this issue. New mto vehicle safety legislation is required. Unsafe trucks have been impounded and fined in the past. Requires exclusive contracts in order to survive in the industry. Potential for strong growth in industry with the help of hauling contracts.