There is a common phrase in business cash is king ldquocash

Assignment Help Finance Basics

Reference no: EM13387990

There is a common phrase in business: cash is king. “Cash flow is the life-blood of a company. Without it, a company will fail” (Hicks, 2012). Yet, companies often have to take risks that could potentially jeopardize their cash flow (e.g. new projects, growth, capital budgeting, etc.). Assume you are the CFO of a struggling company. While you do have a positive cash flow, it is minimal at best. If something does not change soon, the company will go under. Fortunately, your product development team has just created a new product that will not only save the company from financial demise, but the product will revolutionize how the industry does business. The problem is that the product is still two years away before it can be sold to the public, and you will run out of cash within the next six months. How would you propose obtaining the funds needed to keep the company alive and thriving for the next two years until you are able to see a return on the product development, and keep the stakeholders happy?

Reference no: EM13387990

Questions Cloud

Employee orientation is handled differently in each : employee orientation is handled differently in each organization. letrsquos talk about this in both the theoretical

Lani company entered into a noncancelable lease for a : on january 1 2006 lani company entered into a noncancelable lease for a machine to be used in its manufacturing

How do people in country access health care give at least : health care systems around the world provide different levels and types of care and are paid for in dramatically

In-store marketing projectthis assignment involves you : in-store marketing projectthis assignment involves you being a lsquomystery shopperrsquo at a store of your choice.

There is a common phrase in business cash is king ldquocash : there is a common phrase in business cash is king. ldquocash flow is the life-blood of a company. without it a company

Jada invested 8530 in a mutual fund at a time when the : jada invested 8530 in a mutual fund at a time when the price per share was 10. the fund has a load fee of 50. how many

From the start of this course you have accessed the : from the start of this course you have accessed the interactive marketing plan tool and used the step-by-step guide to

Review the concepts wersquove covered in the past few weeks : reflecting on visial literacy in businessreview the concepts wersquove covered in the past few weeks of this course and

Cummings is a construction company and uses the percentage : cummings is a construction company and uses the percentage of completion method. in 2013 they signed a contract to

User Account

All Pages