Answered

Prepare a term paper considering the following points:

1.1 What are alternative current asset investment policies?

1.2 What are alternative current asset financing policies?

1.3 What are the advantages and disadvantages of short-term financing?

1.4 Sources of short-term financing (Accruals, Accounts Payable, Short-term Bank Loans, and Commercial Papers)



Answer :

GinnyAnswer

Final answer:

Businesses use alternative policies to manage current assets efficiently and meet short-term financing needs through various sources.


Explanation:

Alternative current asset investment policies refer to the strategies a company uses to invest in short-term assets like marketable securities. These policies aim to earn a return on excess cash.
Alternative current asset financing policies involve decisions on how to fund short-term assets efficiently, such as using short-term loans to meet cash needs.
Short-term financing offers advantages like flexibility but may come with higher interest rates compared to long-term financing.

Sources of short-term financing such as accruals, accounts payable, short-term bank loans, and commercial papers provide companies with options to meet short-term cash needs.


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