Question 1: Discuss the rationale behind a liberal credit policy and its effect on sales and accounts receivable and the advantages and disadvantages of using short term debt.
Question 2: How would you use short term debt with respect to inventory management, accruals and accounts payable?
Question 3: What would the use of short term debt have on your capital structure and why?
Question 4: What are the risks associated with short term debt and why?