Define each of the following terms:a. Working capital; net working capital; net operating working capitalb. Relaxed investment policy; restricted investment policy; moderate investment policyc. Permanent current assets; temporary current assetsd. Current assets financing policy; maturity matching (self-liquidating) approache. Cash conversion cycle (CCC); inventory conversion period; average collection period;payables deferral periodf. Cash budget; target cash balanceg. Lockbox; account receivableh. Credit policy; credit period; discounts; credit standards; collection policy; credit terms;credit scorei. Trade credit; free trade credit; costly trade creditj. Promissory note; line of credit; revolving credit agreementk. Prime rate; regular, or simple interest; add-on interestl. Commercial paper; accruals; spontaneous fundsm. Secured loan
Define each of the following terms:
a. Working capital; net working capital; net operating working capital
b. Relaxed investment policy; restricted investment policy; moderate investment policy
c. Permanent current assets; temporary current assets
d. Current assets financing policy; maturity matching (self-liquidating) approach
e. Cash conversion cycle (CCC); inventory conversion period; average collection period;
payables deferral period
f. Cash budget; target cash balance
g. Lockbox; account receivable
h. Credit policy; credit period; discounts; credit standards; collection policy; credit terms;
credit score
i. Trade credit; free trade credit; costly trade credit
j. Promissory note; line of credit; revolving credit agreement
k. Prime rate; regular, or simple interest; add-on interest
l. Commercial paper; accruals; spontaneous funds
m. Secured loan
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