Marketing Strategies

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Managing Financial Resources and Decisions By (Name) Name of Class (Course) Professor Name of the School State and City Date Managing Financial Resources and decisions Managing financial resources entails the process of input maximization with the scarce resources. This process calls for maximizing opportunities within an organization through the adoption of proper management procedures. These procedures will not only help an organization reduce its overall costs but will also ensure that it achieves its strategic goals. Many a time, the ideas in an organization outweighs the scarcity of resources. However, an organization can review its strategic plans against…show more content…
This means that a customer belonging to a certain bank can withdraw more money than the balance in his account. However, the bank sets the minimum limit that a person can withdraw depending on his credit worthiness. Therefore, a business is always in a position to meet its current obligations to the extent that the bank allows it to withdraw (Vance, D. 2005). Trade Credit A business borrows this type of finance for a certain period to enable it pay for goods received. The cycle for trade credit has a minimum of 28 days. However, the lenders may extend the credit period to long durations. This gives a business a humble time to arrange its cash flow and balance its finances more efficiently. A company may also finance its inventories using this type of financing. This means that a vendor allows a business a certain number of days before he requests for a payment. Since it does not have a cost implication, the vendors offer this kind of finance to their customers to induce them into their business. (Vance, D. 2005). Long Term Sources This refers to those finances whose repayment period is more than a year. This type of finances includes: Long term bank loan This occurs when a company borrows money from the bank for a certain period. Many a time, businesses are required to pay
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