Upon graduation you receive a job offer from Pronto Manufacturing Incorporated. Duties listed with this job position include responsibilities in implementing the policy and management of cash conversion, inventory, and receivables. To get ready for the start of this job your immediate supervisor decided to review you on the following topics.

1. In maintaining the level of working capital, what are two main concerns for a firm? (2 marks)
2. Discuss two techniques for controlling inventory, apart from the E0Q model. (4 marks)
3. O3.
4. Discuss two factors managers must consider when deciding a trade credit policy for the firm?