Lawrence Team Essay

1859 Words May 3rd, 2011 8 Pages
CRAM Exclusive
Essay Sample
Lawrence Sports Working capital management is very important in running a business because it involves managing all current assets and liabilities. Working capital management involves making appropriate investments in cash, marketable securities, receivables, and inventories, as well as the level and mix of short-term financing (Emery, Finnerty, Stowe, 2007, p. 639, para. 3). Currently Lawrence sports, a multi-million dollar company that manufactures and distributes sports equipment is seeking

middle of document…

The maturity approach uses short-term financing and borrowing based on temporary current assets including those in seasonal variations. The maturity approach can be considerate a gamble because the approach assumes that cash flow and funding is always available.
Conservative Approach
The conservative approach deals directly with using only “long-term financing…to finance all of the firm’s long-term assets, all of its permanent current assets, and some of its temporary current assets.” (Emery, Finnerty & Stowe, 2007) The conservative approach is more likely to yield larger positive cash balance due to financing on a long-term basis. A possible downside to having a too large of a cash balance is forfeiting possible investing opportunities to grow existing funds.
Aggressive Approach
The aggressive approach to financing working capital is a bit more risky than the maturity or conservative approaches. This approach deals less with long-term financing and more with short-term funds with a goal of increasing profitability with risk-taking. The approach uses “the Principle of Risk-Return Trade-Off that without some sort of market imperfection, higher expected profitability comes only at the expense of greater risk” (Emery, Finnerty & Stowe, 2007) or more simply said, the greater the risk, the larger the return.
Evaluation of the Risk Associated with the Recommendation
After a careful review of each type of new financing working capital, Lawrence Sports has
CRAM Exclusive

Related Documents

  • Friar Lawrence Essay

    Friar Lawrence occupies a strange position in Romeo and Juliet. He is a kindhearted cleric who helps Romeo and Juliet throughout the play. He performs their marriage and gives generally good advice, especially in regard to the need for moderation. He is the sole figure of religion in the play. But Friar Lawrence is also the most scheming and political of characters in the play: he marries Romeo and Juliet as part of a plan to end the civil strife in Verona; he spirits Romeo into Juliet’s room and

    Words: 707 - Pages: 3
  • Essay on Analysis of Friar Lawrence and the Nurse

    Romeo and the Friar Lawrence share an analogous relationship. Fairly similar to the relationship that of Juliet's and the Nurse's. Romeo sees the Friar as a mentor, a prudent whilst the Friar himself recognizes Romeo as a pupil of his. The Nurse and Friar are ultimately elected as Romeo and Juliet's mentors prevailing over the parents of both star crossed lovers. The Friar acts as a philosophical mentor to Romeo, similarly like the Nurse to Juliet. The Nurse and Friar symbiotically work together

    Words: 1083 - Pages: 5
  • The Absence of Authentic Realism in Lawrence Essays

    obliteration, the obliteration of `her kind of womanhood, intensely personal and individual', whereas Leavis can dispassionately look upon the story as purely `allegorical, symbolic' ? It is the `intensely personal and individual' womankind to whom Lawrence seems to direct his story. He appears to market his tale to those women who would have already enjoyed the work of such writers as Charlotte Perkins Gilman or Kate Chopin for example, so closely do the opening sections of his story resemble these

    Words: 1698 - Pages: 7
  • Importance of Team Work Essay

    An Effective Team Now that the fundamentals have been established, the essay moves on to team effectiveness and team establishment in organizations. Firstly, an ideal criterion should be established. An effective team is a consequence of a good investment in teams. The types of investments are discussed in detail in a later portion of the essay. The first and foremost requirement is the willingness to achieve a common goal and purpose. Everyone should be clear about the tasks they have been allotted

    Words: 2761 - Pages: 12
  • Team Dynamics and Conflict Resolution in Work Teams Essay

    Teams should also have persistency in whatever their tasks are and stay at a pace that will enable them to feel a control over things. They should not feel overwhelmed because this will deter them of future endeavors to come. Everyone should have a specific duty to live by and they should all come to an agreement to who is good at what. When this has been achieved, they will reap the benefits of a successful team (Wadsworth, 2009). Cooperation is another characteristic that will provide excellence

    Words: 1274 - Pages: 6
  • Essay on The Difference Between Seal Teams and Swat Teams

    According to Lee Lerner and Brenda Lerner (2004), “SEAL team operations are noted for their mobility, swiftness, and precision.” However, SWAT teams may be called out to handle a myriad of situation apart from their normal daily operations. There are five main categories that SEAL teams could be sent to perform which are: Unconventional Warfare, using guerilla tactics in battle, Foreign Internal Defense, building relationships with foreign nationals through training, Direct Action, going against

    Words: 1829 - Pages: 8
  • Impact of Team Conflicts on Team Performance Essay

    The research seeks to investigate the interrelationship between task complexity and team diversity, and their impact on team performance. Questionnaire was used for data collection data was collected by 270 memeber from 28 teams. team performance was assessed by the manager and task complexity was assessed by team members. The finding shows that diversity is negatively related to task complexity and positively related to performance. (Higgs, 2005) This article is about the set of roles for teachers

    Words: 3051 - Pages: 13
  • Team Success and Failure Essay

    Team cohesion affects the extent to which members like one another, get along with each other, and trust and respect one another’s abilities and opinions. Although these characteristics are difficult to observe, managers can look for signs that team members are well-acquainted past superficial meet-and-greet topics. Managers can also determine whether team members equally participate in group discussions and activities rather than forming cliques or subgroups of cohesive units. Some examples of how

    Words: 2853 - Pages: 12
  • Building Successful Teams Essay

    Team Development Stages A common rational why a team has been formed is to complete a specific task or meet a specific goal. When this is the case, there is a set of particular stages in team development. The team will have different needs depending on the different stages of the implementation. It is the leader¡¦s task to provide the proper training, coaching, and environment that promotes progress through these stages (Strategos, Inc., 2005). There are four stages of team development: „X Forming

    Words: 1773 - Pages: 8
  • Virtual Teams Essay

    Also is a virtual team does not have a strong leader within their group it can lead to assignments not being handed in on time or completed properly. Many things can be looked over if there isn’t someone within the team to make sure that things are being handled properly. Another disadvantage to a virtual team is that all team members may not have the same values or cultures as they are located in other parts of the world which ultimately can lead to conflict within the group. Any of these disadvantages

    Words: 1798 - Pages: 8