1. Explain what is a cash discount? How is it computed? Why would a company suggestion a cash discount?
2. Explain what is net trade credit? How is it computed? Why is it important?
3. Explain what is a compensating balance? Why are they used? How can they be a advantage for the company borrowing money?
4. Define the advantages and limitations of issuing commercial paper.
5. Define and contrast pledging accounts receivable as collateral for a loan and factoring. Give instances of both