Discussion 2 – need it in 20 hours max

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Topic:

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 will also revolutionize how the industry does business. The problem is that the product is still 2 years away from being able to be sold to the public, and you will run out of cash within the next 6 months. How would you propose obtaining the funds needed to keep the company alive and thriving for the next 2 years until you are able to see a return on the product development? How would you keep the stakeholders happy?

Suggestions for Instructor:

Cash flow is measured by the movement of cash in and out of a company, and is a way of measuring their financial stability. The expected value of a company is the amount of money it is expected to profit in a given amount of time. If an investor thinks a company is not going to meet its expected value they may pull their money out of the investment. Therefore, this share value decreases and allows other investor to buy the stock at a lower premium. Those investors are going to make a greater profit if that company in the end meets its expected value.

Cash flow is a much better estimate of a company’s worth. Simply speaking, cash is much easier to utilize in the market versus other tangible assets. So, it can be understood that any company that has available cash can operate much smoother in the industry and gain a greater stability in the market. Liquidation of assets depends on the assets value in the current market. The outcome of asset liquidation may not produce the cash that is needed or required for operations. Thus, cash is critical to any business operations or existence. The bottom line is that cash determines the health of the company.

Stock values are assessed to a company based on the value assigned to the company. Typically this number is based on cash flow, marketability, P/E ratio, etc. The stock value can be too low or too high and may not be based on actual cash availability. There may be inflators in the stock value that can fluctuate based on the current market and the stock value may not be truly an accurate estimate of the company’s worth.

Instructions:

You are required to submit a thread of at least 300 words in response to the provided prompt for each forum. In addition to the thread, you must reply to at least 2 classmate’s threads. Each reply must be at least 150 words. For each thread, you must support your assertions with at least 2 citations in current APA format. Each reply must cite at least 1 source and include biblical integration. Acceptable sources include the textbook, the Bible, and scholarly, peer-reviewed journal articles.

More Suggestions:

Here are a few general notes on the DBs:

Substantive means, “with substance.” Avoid filling your posts with writing that does not add anything to the discussion.

Be clear, concise, and to the point. 300 words is the guideline, quality over quantity.

Find your own references. Do not just use the same references that a person who posted before you found.

Avoid quoting from the textbook since this does not add to the discussion (since all of you are reading the same information).

If you paraphrase, be certain the reader can decipher what is your original thought versus what you are borrowing and use proper citations (APA format required)

Avoid the use of excessive quotes and long quotations.

Do not use Wikipedia as a reference for academic purposes.

Remember to incorporate the biblical/Christian worldview in your posts. Integrate this input rather than simply quoting a verse at the end of the post.

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July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.