This preview shows page 1. Sign up to view the full content.
Unformatted text preview: of the "hazards." Strategy Borrowing money Attempting to accelerate customer collections Delaying payments Writing checks against future receipts not yet deposited Slowing expansion plans Establishing bank overdraft protection or a line of credit Issuing additional capital stock Planning full utilization of cash flows, with no reserves Hazard May necessitate offering of a discount May result in unnecessary financing costs May dilute ownership of existing shareholders May alienate key suppliers May result in unexpected shortfall May be an illegal strategy May give competitors an advantage May result in risk of financial failure...
View Full Document
This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11