Discussion 2: Cash Flow

Cash flow, the movement of money in and out of a business, encompasses not only physical currency (bills and coins) but also bank deposits and other methods of transferring funds. Since businesses cannot function or exist without money, cash flow is a critical concept for business owners to understand.

In this Discussion, you will examine a case study that features a small business owner experiencing cash flow problems. You will explore cash flow management strategies and consider the outcomes of mismanaging or neglecting cash flow.

For this Discussion, read the case study “Holterholm Farms” on page 435 of your textbook. Reflect on how Ron handled his financial concerns.

By Day 5

Post a cohesive and scholarly response based on your readings and research this week that addresses the following:

With the case study in mind, consider if it is possible for a profitable company to fail because of the level of cash flow. Why or why not?

By Day 7

Respond to two or more of your colleagues’ postings in one or more of the following ways:

• Ask a probing question, substantiated with additional background information, evidence, or research.
• Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.
• Offer and support an alternative perspective using readings from the classroom or from your own research in the Walden Library.
• Validate an idea with your own experience and additional research.
• Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.
• Expand on your colleagues’ postings by providing additional insights or contrasting perspectives based on readings and evidence.

Return to this Discussion in a few days to read the responses to your initial posting. Note what you learned and/or any insights you gained as a result of your colleagues’ comments.

Submission and Grading Information