Professor Rosilyn Overton | Chapter 17 – Working Capital Management
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Chapter 17 – Working Capital Management

There Is No Special Assignment For This Chapter!

The following are terms that you should be able to define perfectly when you finish studying this chapter. Make your flash cards and take them with you, reviewing them whenever you have a chance. You will be a happy test taker!


Key terminology:

Speculative motive
Precautionary motive
Transaction motive
Cash concentration
Zero-balance account
Controlled disbursement account
Terms of sale
Credit analysis
Collection policy
Credit period

Cash discount
Credit instrument
Credit cost curve
Captive finance company
Five C’s of credit
Credit scoring
Aging schedule
Economic order quantity
Material requirements planning
Just-in-time inventory

Don’t forget! Homework is due by 6:30 PM on class day by e-mail to! Don’t suffer a zero by being late.