What is invoice discounting?

What is ‘non-recourse’ factoring?

What is meant by the economic order quantity (in the context of inventory management)?

What is over-capitalisation?

How is the operating cycle (or working capital cycle) calculated?

What is meant by the sensitivity of a variable in the context of NPV decision making?

What is the difference between ‘risk’ and ‘uncertainty’?

In the situation of single period capital rationing, when the projects are divisible, on what basis are the available projects ranked?

What is meant by the term ‘profitability index’?

What is ‘soft’ capital rationing?

What is ‘hard’ capital rationing?

What is meant by the term ‘capital rationing’?

In asset replacement questions, how is the equivalent annual cost calculated?

What is meant by the term ‘real cost of capital’?

What is meant by the term ‘nominal cash flows’?

What is meant by the term ‘perpetuity’?

What is meant by the term ‘annuity’?

What is the definition of the Internal Rate of Return of a project?

What is mean by the term ‘sunk cost’?

What is meant by the term ‘incremental cost’?

What is the definition of the payback period?

Name two cash management models.

List three reasons for a company to hold cash.