FIN 200 Week Six Discussion Questions

DISCUSSION QUESTION 1

What are the goals of cash management for a business? Should those goals be the same for the every kind of business? Why or why not?

One of the goals of cash management is to invest excess cash for a return and at the same time have adequate liquidity. Proper cash forecasting is crucial in a recession and is required to determine the proper time to incur and pay back debt and the amount to transfer daily between management goals should vary between businesses. For instance, financially strong companies that are able to borrow at favorable rates , even in difficult financial markets can afford to keep a lower level of cash than companies that are highly leveraged or considered poor credit risks.

DISCUSSION QUESTION...