BUS-101 Lecture Notes - Lecture 42: Working Capital, Cash Flow, Acceptance Sampling
2 May 2016
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People prefer good things sooner and put off and prefer to put bad things off until later. Investors demand a premium in exchange for waiting to get their money later. Borrowers are willing to pay an additional amount to postpone making the payment until later. Working capital // the funds that firms use to meet their day-to-day operations. To improve cash flow and increase the level of working capital in the firm, a financial manager would want to get paid as soon as possible and pay expenses as late as possible. Keeping existing customers is easier than attracting new ones. = the characteristics of a product or service that bear on its ability to satisfy stated or implied needs // even if just one need is not met could turn the experience into a poor one. Satisfy customers = what they want, when they want it, where they want it, to their standards.
