Lawrence Sports Simulation

Runninghead: Lawrence Sports Lawrence Sports Simulation University of Phoenix November 11, 2010 Lawrence Sports Simulation As a large sports manufacturer, Lawrence Sports has to redraft its approach to current functional capital policies. Group C has formulated three selection working capital policies that seek to maximize the success of Lawrence Sports on todays hyper-competitive global stage. The chosen policy shall guess the risks associated with the recommendation, contingencies of the policy, performance evaluations, and an implementation plan to present to the Chief financial Officer (CFO) Stephanie Sanders for review and approval. Evaluation of Risks A firms Working Capital Policy is the instrument that guides the firm in making decisions that maximize wealth (Emery, Finnerty, Stowe, 2007, p. 638). Lawrence Sports is a $20 one million million million revenue company that produces and distributes baseball, basketball, and football equipment (University of Phoenix, 2009). The firm seeks a working capital policy that will maximize sh arholders wealth and halt business partners satisfied. The chosen recommendation help Lawrence Sports reduce early difficulties.

The major risk that follows the chosen recommendation is the fact that the impertinent companies may not respond to the aggressive policies that the company has sit forth. If Lawrence Sports fails to properly manage its working capital a emergence of outcomes could happen including: the loss of a major customer and some(prenominal) vendors due(p) to unsatisfactory relationships, maxing out credit line with the bank, make Murray Leather to go bankrupt, and Mayo Stores to default on payments due to unmet forecast sales. Working Capital Alternatives and Policies Working capital decisions are fast paced because they reflect a firms periodic operations.   The Principles of Finance, along with hard work and imagination, provide guidance for sound, value-maximizing decisions (Emery, Finnerty, Stowe, 2007, p.638). Lawrence... If you neediness to get a full essay, order it on our website: Orderessay

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