General Motors Case Study

2166 Words 9 Pages
Register to read the introduction… General Motors is very open about its investing procedures but some elements may be hidden to protect its investors in the future. The equity of the organization would be determined by the amount of assets verses the amount of liabilities, as long as General Motors decides to use its capital earned from sales to pay its liabilities their equity would be in good standing. The decision to purchase debt securities would come from the organization determining if the return on investment would be significant enough to do so, debt securities are less risky that other forms of investment but more risky that purchasing cash investments. When looking at risk verses reward cash is king in the decision for an organization to invest its …show more content…
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