Case Segment #4
In order to be prepared to handle
potential cash flow problems, Cassie realizes that she should make a list of
the things that could happen to cause such problems.
List and explain some of the things that can cause a business of her size
to experience cash flow problems. (Hint: You
may want to think of some of the things that could be unique to a sign
business, but since the purpose of this case is not to learn about sign
businesses, also consider general cash flow problems that can manifest in any
type of small to medium sized business.)
Six months after making this list, Cassie is experiencing
some of these problems. Therefore, she
needs to find some additional working capital.
List the potential sources for acquiring this working capital,
and the pros and cons of each alternative.