1. Provide an example of a short-term financing strategy and a long-term financing strategy. In what financial scenario would each strategy be most applicable? Is one method preferable to the other? Explain your rationale.

2. Give two examples of credit policy affecting the cash conversion cycle. Is relying on credit as a form of capital management advisable? Why or why not?

3. Of the three types of loans available for corporations, under what scenarios would each be appropriate? why?