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M3-A2 Case On Working Capital: 1. Imagine You Are Britany, How Would You Have Managed The Situation Differently?

Britany would have gotten to know the Kyuareste Company and native bag supplier better before agreeing to their payment terms. She would have had backup plans and legal protections in place in case the transaction went wrong. As the bank, they would have informed Britany that overdrafts allow short-term borrowing through your account up to a limit, but interest fees apply. They may have offered a bank loan as an alternative, which is repaid in monthly installments with added interest over a longer period.

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Ciedrick James Loreto
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1K views

M3-A2 Case On Working Capital: 1. Imagine You Are Britany, How Would You Have Managed The Situation Differently?

Britany would have gotten to know the Kyuareste Company and native bag supplier better before agreeing to their payment terms. She would have had backup plans and legal protections in place in case the transaction went wrong. As the bank, they would have informed Britany that overdrafts allow short-term borrowing through your account up to a limit, but interest fees apply. They may have offered a bank loan as an alternative, which is repaid in monthly installments with added interest over a longer period.

Uploaded by

Ciedrick James Loreto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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M3-A2 Case on Working Capital

1. Imagine you are Britany, how would you have managed the situation
differently?

Getting to know the Kyuareste Company and your supplier of the native bags
then give your own condition on the payment.

Ready plans and legal action if the thing goes wrong in the transaction in the
kyuareste Company and the supplier of the native bags.

2. Suppose you are the bank, what prior information would you have
given to Britany before taking the bank overdraft?

As a suppose a bank the prior information that would had given to britany is she
mast agreed overdraft can be a useful tool if you want to borrow money over
the short-term or in an emergency, and an overdraft allows you to borrow
money through your bank's current account up to a certain limit. You may find
your bank automatically offers you an overdraft, or you have to request this
facility. You will usually have to pay interest or fees on your overdraft. There
are a few banks that offer interest or fee-free overdrafts, but these typically only
apply up to a relatively low limit or for a set time. If the things go wrong I will
offer a bank loan is an agreement whereby you borrow funds that you’ll have to
repay with added interest. You typically repay the loan in monthly instalments.

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