--%>

Explain the primary advantage of investing its funds

Explain the primary advantage to a corporation of investing some of its funds within working capital?
Through investing in working capital a firm gets the liquidity it require helping it to pay its bills. Therefore the risk of the firm is reduced.

   Related Questions in Finance Basics

  • Q : What is Fingerprint biometrics

    Fingerprint biometrics has basically three main application ground: Large-scale Automated Finger Imaging System for law enforcement Fraud prevention in entitlement programs Access control for facilities or computers.

  • Q : Question based on consolidated balance

    Normal 0 false false

  • Q : What is Uniform Codes Manual Uniform

    Uniform Codes Manual (UCM): It is a document sustained by the Department of Finance that sets standards for codes and different other information employed in state fiscal reporting systems. Such codes recognize, for illustration, prog

  • Q : How do flotation costs influence the

    Normal 0 false false

  • Q : Define the term Chapter Chapter : The

    Chapter: The reference allotted by the Secretary of State to an enacted bill, numbered in sequence in order of enactment each calendar year. The enacted bill is then termed to by this "chapter" number and the year in which it became law. For illustrat

  • Q : Describe working capital Describe

    Describe working capital? Working capital contains the current assets of the firm.

  • Q : Define Allocation Allocation : The

    Allocation: The distribution of funds or costs from one account or misuse to one or more accounts or appropriations (example, the allocation of employee compensation funding from the statewide 9800 Budget Act items to the departmental Budget Act items

  • Q : Define Budget Year Budget Year (BY) :

    Budget Year (BY): The next state fiscal year, starting July 1 and ending June 30, for which the Governor's Budget is proposed (that is, the year following the present fiscal year).

  • Q : Explain Detailed Budget Adjustments

    Detailed Budget Adjustments: Department Detailed Budget Adjustments are comprised in department budget displays to give the reader a snapshot of proposed expenses and position adjustments in the department, why tho

  • Q : Describe the three financial factors

    Normal 0 false false