Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 3: Q3DQ (page 218)

Why would a financial manager want to slow down disbursements?

Short Answer

Expert verified

The finance manager slows down the disbursements to increase the cash balance available with the organization.

Step by step solution

01

Meaning of financial management

The process of managing the long-term and short-term finance of an organization is called financial management. The finance manager analyses the different sources before determining the best alternative for the organization.

02

The reason for the slow down of disbursements

The finance manager slow-down the disbursement process as it helps in increasing the cash balance available with an organization. The increase in the cash balance provides the organization with extra funds to invest and generate investment income.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Oral Roberts Dental Supplies has annual sales of \(5,200,000. Ninety percent are on credit. The firm has \)559,000 in accounts receivable. Compute the value of the average collection period.

Why are Treasury bills a favorite place for financial managers to invest excess cash?

Explain the similarities and differences of lockbox systems and regional collection offices

Briefly discuss three types of lender control used in inventory financing.

What is an asset-backed public offering?
See all solutions

Recommended explanations on Business Studies Textbooks

Strategic Direction

Read Explanation

Organizational Behavior

Read Explanation

Human Resources

Read Explanation

Managerial Economics

Read Explanation

Corporate Finance

Read Explanation

Strategic Analysis

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free