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1. Discuss the two definitions of cash. Why do corporate treasurers often use the second definition? 2. What are the four key factors necessary to

1. Discuss the two definitions of cash. Why do corporate treasurers often use the second definition?

2. What are the four key factors necessary to create the firm's credit policy? How would a more restrictive policy differ from a relaxed policy? Use examples to explain this difference in the two policies. Will this affect sales?

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