Question
5. Prepare brief outlining the proposed solution as chosen in Question 4. Your brief must include: An explanation of the purpose of the brief The
5. Prepare brief outlining the proposed solution as chosen in Question 4.
Your brief must include:
An explanation of the purpose of the brief
The main body that gives all relevant information relating to the issue
Recommendations for implementation.
Please provide answer just for the 3rd: Recommendations for implementation. Question 4 and Question 5 answers (For Reference): Question 4 Answer:
T-Chart to Identify the Most Viable Solution
Solution | Advantages | Limitations |
Implement stricter collections procedures | Reduced accounts receivable | Could damage relationships with customers |
Negotiate better payment terms with vendors | Improved cash flow | Could be difficult to achieve |
Explore alternative funding sources | Access to additional capital | May be more expensive than traditional financing |
Invest excess cash in low-risk, high-yield instruments | Increased returns on investment | Limited potential returns |
Question 5 Answer:
Purpose:
The purpose of this brief is to outline a proposed solution to the issue of managing cash flow effectively. The proposed solution involves implementing stricter collections procedures, negotiating better payment terms with vendors, and exploring alternative funding sources.
Main Body:
- Stricter Collections Procedures:
- Implement a more aggressive collections process, including sending reminders, making phone calls, and issuing late payment notices.
- Consider offering discounts for early payments.
- Negotiate Better Payment Terms with Vendors:
- Negotiate longer payment terms with vendors.
- Take advantage of vendor discounts or early payment programs.
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