Implementing a just-in-time inventory control policy is least likely to help Mr. Boyd manage his daily cash requirements because it would hinder his ability to respond to customer demands and maintain cash flow. So, correct option is d. Implement a just-in-time inventory control policy.
Implementing a just-in-time inventory control policy is the least likely method to help Mr. Boyd manage his daily cash requirements. Just-in-time inventory control aims to minimize holding excess inventory, which can tie up cash. However, in Mr. Boyd's case, where he struggles with overdue customer payments and cash flow issues, reducing inventory levels may not be the most suitable solution.
Mr. Boyd's primary challenge lies in getting customers to pay their bills promptly and ensuring he has enough cash on hand to meet his immediate financial obligations. Implementing a just-in-time inventory policy would further limit his ability to respond to customer demands and maintain a steady flow of products and services, potentially exacerbating his cash flow problems.
To address his cash flow issues effectively, Mr. Boyd should focus on methods such as collecting what is due to him as quickly as possible, making credit available to keep current customers happy, and accepting bankcards for quicker payments. These approaches can help him maintain a healthier cash flow while also addressing his current financial challenges.
Therefore, correct option is d. Implement a just-in-time inventory control policy.
Complete question:
As the media focuses on the financial problems of the Big Three automakers (Ford, General Motors, and Chrysler) and Wall Street banking giants, small businesses seem to be the forgotten link in the financial dilemma. Saying that the recession and continuing financial crisis is hurting small businesses, is an understatement. Small businesses across the nation are in a death struggle to stay afloat as lending institutions continue to hoard cash and customers take longer to pay their bills. Intuit's survey of 751 businesses with fewer than 10 employees found that owners have average overdue customer payments of $1,500 a month. With 22 million businesses falling into this category, the overdue payments add up to a cash flow strain of $33 billion. A small-business owner in Texas is a good example of small businesses with big cash flow problems. James "Hoss" Boyd owns an electrical contracting and solar energy installation firm. His products and services are in demand, so sales are great, but that doesn't help his cash flow position. A big part of his day is trying to collect his receivables (money owed his company) so that he can pay what he owes to other firms. Boyd knows he isn't alone. "I got a call today from our print shop," he says. "We owe them $400 to $500 for blueprints. It was the company owner on the line making collection calls, Mr. Boyd says, adding, "I would venture to say he's waiting on invoices, too." Boyd sought help from lenders for months but could only get a line of credit through his credit card company. Unfortunately, he is behind on his payments that carry a 29.99 percent interest rate. Boyd joins the multitude of small business owners hoping for an economic turnaround and some solution to the short-term lack of credit. Raymond J. Keating, chief economist with the Small Business and Entrepreneurship Council, is quick to remind government policymakers that for a recovery to occur, small businesses must be invited to the party. According to Keating, some 60 to 80 percent of new jobs come from small businesses. Fifty percent of private sector gross domestic Which one of the following methods is least likely to help Mr. Boyd manage his daily cash requirements? Multiple Choice a. Accept bankcards (e. g. MasterCard, VISA, etc.) ) b. Collect what is due to him as quickly as possible c. Pay bills that he owes as late as possible d. Implement a just-in-time inventory control policy e. Make credit available to keep current customers happy