Working Capital:
Question 1. A company can be forced to go into bankruptcy if it has a negative working capital and not be able to pay its bills on time. Have you experience such a position or to a lesser extend (short of bankruptcy)? If so what were the remedies taken by your company?
Question 2. Your management approaches you for inputs to increase the working capital of your department or the company. What suggestions would you give?
Question 3. In your personal experience do you prefer to lease or buy an automobile? Describe why you selected that decision over the other one.
Leases:
Question 4. Have you ever been in a position at work to make a decision of whether to lease or buy? If so can you share your experience with us?
Question 5. In your opinion would a companies prefer to use capital lease or operating lease in acquiring specialty equipment that the company intends to use and keep for almost all of its useful life?
Question 6. What are some of the various lease options? When would you use one option over the others? What could be the financial influence of this decision?
Question 7. Under which circumstances would you prefer to lease versus purchase? What are the criteria that you would use to make this decision? What is the financial influence of this decision?
Question 8. What are the components of the capital structure? What are the differences of these components? How do you determine the optimal mix of the components of the capital structure?