Describe the two of the asset categories in working capital. 2. Why is working capital so important? 3. A growing business typically has cash flow problems because profits tend to be reinvested back into the business. Describe how you would solve that. 4. What role does inventory management play in an overall business plan and describe the benefits of just in time inventory management. 5. Describe one of the methods for managing cash disbursements or cash receipts and how it impacts profitability.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. Describe the two of the asset categories in working capital.
2. Why is working capital so important?
3. A growing business typically has cash flow problems because profits tend to be reinvested
back into the business. Describe how you would solve that.
4. What role does inventory management play in an overall business plan and describe
the benefits of just in time inventory management.
5. Describe one of the methods for managing cash disbursements or cash receipts and
how it impacts profitability.

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