Working Capital Policy

Paper Summary:

This paper explores a comprehensive working capital policy and presents issues related to cash management techniques and long and short term financing. The paper also looks at elements of the ethical implications of the methodologies being devised. In addition, the paper examines the relative advantages and disadvantages of the methodologies employed within each categorization, as it relates to the working capital policy employed. The paper explains that working capital policy has become important as financial managers try to accurately monitor risk and exposure, and use policies for improved decision-making. The paper then points out that these policy actions and implications have gained much needed use, as organizations, try to utilize financing options and increase the overall efficiency of organizations.

Outline:
Introduction
Working Capital Policy
Ethical Issues
Conclusion

From the Paper:

" Financing within a firm or organization is one of the most expansive areas, and has some of the more pronounced and augmented processes embedded within the overall strategic development of financial management. However, there are some aspects that are frequently used and require special attention - cash management techniques, methods of short-term financing, and working capital policy. These areas become even more important, because they are utilized by most, if not all firms, irrespective of size and or general business objective."

Sample of Sources Used:

• ecom\Block, S. and Hirt, G. (2005). Foundations of Financial Management, 11th Edition. New York: McGraw Hill Publishers.
• Connolly-Smith, C. (2000). Financial Management for Book Publishers in Developing Market Economies. Budapest: Center for Publishing Development. Retrieved on June 23, 2007 from http://www.osi.hu/cpd/policyresources/fmbp/chapter_06_page1_fmbp.html
• Hardcastle, J. (n.d.). Working Capital Management. Ezine Articles. Retrieved on June 23, 2007 from http://ezinearticles.com/?Working-Capital-Management&id=308162
• Weinraub, H. and Visscher, S. (1998). Industry related to aggressive conservative working capital policies. Journal of Financial and Strategic Decisions, 11, 2, 11-18. Retrieved June 23, 2007 from http://studyfinance.com/jfsd/pdffiles/v11n2/weinraub.pdf

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