FINC600 Corporate Finance Short-Term Financing Discussion
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
FINC600 Corporate Finance Short-Term Financing Discussion
FINC
Hello,
This is a two-part question. First, I will need the discussion question answer which will be below in bold, 250+ words APA format. For those response I will need three responses of at least 150 words each.
There are several strategies for short-term financing. Describe two strategies and include the advantages and disadvantages of each strategy.
Part two
Student one:
There are several strategies for short-term financing. Describe two strategies and include the advantages and disadvantages of each strategy.
According to the class textbook, there is no universally accepted definition for short-term finance (Ross, Westerfield, Jaffe, & Jordan, 2018); however, short-term finance is easily understood when considering long-term finance and what that implies. Long-term finance involves cash inflows and outflows over multiple years; likewise, short-term finance involves cash inflows and outflows, but usually within just one year. An example of a short-term financial decision is when a business orders raw material, pays in cash, and anticipates selling finished goods in one year for cash (Ross et al., 2018).
Strategies for short-term financing include business loans (Ross et al., 2018). New businesses often borrow cash; in addition, businesses with hopes of expanding will often borrow cash. Business loans have traditionally been viable options and there are two types: secured and unsecured. Secured business loans are more difficult to obtain than unsecured business loans due to required collateral; secured business loans require collateral, whereas unsecured business loans do not; property can be seized in event of defaulting on secured business loans, whereas unsecured business loans will carry higher interest rates, making individual loan payments higher and more difficult to afford; unsecured business loan qualification can be more difficult for businesses with poor or nonexistence credit history (McMullen, n.d.).
References
McMullen, A. (n.d.). The advantages and disadvantages of an unsecured business loan. Small Business-Chron. Retrieved from
Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGraw-Hill Education
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). 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The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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