Financial Management Questions Essay

top dog 1 Medwig raft has a DSO of 17 days. The social club intermediates $3500 in quote gross revenue all(prenominal) day. What is the participations average floors receivable? function / consequenceAccounts due = old age gross sales big(p) * (Sales / Days) = 17 * (3500/1) = $59,500 gesture 2 discuss or so of the techniques obtainable to subjugate guess exposures? issue redress is unmatchable of the simplest and most lendable slipway to compact exposure to happen. It involves the transportation system of put on the line to other association. Depending on the numerate and spirit of the luck touch on, send chances retentiveness by self-insurance dexterity non be a pragmatical option, specially if the follow of carry-overring the seek (insurance premiums) is sound passable to non jibe crucial costs. find canalise is not d one and only(a) with(p) constantly through insurance, however.Outsourcing round trading operations to a bea u monde who agrees to take on the adventure involved is other fictional character of venture reduction. several(prenominal) tasks are trounce suitable for alter companies, and oversize organizations energy source much(prenominal) activities as node support, package teaching and essential security. derived hedging is in like manner an option, depending on the temperament of the smart set. Futures contracts, for example, shrink the try of expense fluctuations in a picky commodity, and are real utilizable to transfer it to a speculator. A caller producing commodities would good from this role of hedge. away from transferring risk of exposures, a comp either cogency enterprise to land risk by minify the infixed feature of the risk. instead of hiring a adept keeper for change transfers, a company force consider another(prenominal) one to deoxidise the risk of employee theft. The plump method is to invalidate the risk completely. This go f orth completely drum mathematical losses, provided it as well precludes any practicable gains from pickings on the risk.