Time Operating Policy: Behavior in Bad Times (Financial Distress) Homework Help

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Operating Policy: Behavior in Bad Times Homework– Have Expert Assistance!

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Operating Policy: Behavior in Bad Times– Meaning and Significance

The use of a non-expansionary or monetary policy during the good times would bring on a recession that is much deeper and lasts much longer after a shock of uncertainty. This also stays true afterward, including the long-term rates that have to be considered for expectations about financial policy stance in the future. Operating Policy is a reaction to the behavior during times of financial distress, and is used for administering discretionary fund budgets.

It is implemented by an organization along with other financial policies, in order to support its strategies and goals included in the related operational plans. It is generally defined and implemented by the Board of Directors of a company.

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Why is Operating Policy: Behavior in Bad Times Important?

The Operating Policy serves as a directive to the organization from the Executive Committee. It outlines all the processes and policies that every employee isexpected to follow.

The Executive Committee, Board of Directors and the Core Management are responsible for maintaining specific operating policies. With the level of uncertainty being higher during recession and financial duress, operating policies are important for the sustenance of an organization.

Operating policy involves authorizing the use of reserves, calculating target amounts, creating and maintaining reserves, way of monitoring the reserve account, replenishing the reserve balance and more.

Our Operating Policy:

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We have highly skilled tutors, who have more than a decade of experience in Finance. Our Operating Policy:

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