Assignment 1: Discussion—Short-Term Financing Needs

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Discussion Assignment

Assignment 1: Discussion—Short-Term Financing Needs

  1. After reading your report, as well as comments by others on the teams, the Genesis team began to understand the importance of cash flow and financing in high-growth scenarios. The Genesis accountant suggested that the focus should be on developing a financial strategy that would ensure operational needs are met through short-term financing. The Genesis team instructed Sensible Essentials to explain in basic terms the factors and mechanics necessary to determine short-term financing needs.

    As the finance expert for Sensible Essentials, do the following:

    • Explain the concept of working capital and its importance to Genesis.
    • Describe the mechanism and methodology used to ensure that operational needs are met through short-term financing. Explain why this methodology is important to Genesis.
    • Explain how working capital represents the assets that are needed to carry out the day-to-day operation and how working capital can act as a source of financing or increase the need for financing.
    In your response, be sure to consider the time value of money and the relative advantages and disadvantages of short-term loans versus internally generated funds.
  1. Please complete the mini case found on pages 171–172 of your textbook, Brigham and Ehrhardt.

Your initial post should be no more than 500 to 750 words. Apply APA standards to citation of sources.

By Saturday, May 17, 2014, post your response to the appropriate Discussion Area. Through Wednesday, May 21, 2014, review and comment on at least two peers’ responses. In your response, do the following:

  • Respond with substantial comments to enrich discussion and the learning experience.
  • Contribute new, relevant information or quotes from course readings, Web sites, or other sources. Build on the remarks or questions of others, or share practical examples of key concepts from your experience, professional or personal.
Assignment 1 Grading Criteria
Maximum Points
Initial response:
  • Was insightful, original, accurate, and timely.
  • Was substantive and demonstrated advanced understanding of concepts.
  • Complied/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions.
16
Discussion response and participation:
  • Responded to a minimum of two peers ina timely manner.
  • Offered points of view supported by research.
  • Asked challenging questions that promoted the discussion.
  • Drew relationships between one or more points in the discussion
16
Writing:
  • Wrote in a clear, concise, formal, and organized manner.
  • Responses were error free.
  • Information from sources, where applicable, was paraphrased appropriately and accurately cited.
8
Total:
40

 

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