Showing Page:
BUSI 530 Discussion Board Forum 3 Thread
Discussion Board Forum 3 Thread
BUSI 530-B09
Austin Rogers
Liberty University
Showing Page:
BUSI 530 Discussion Board Forum 3 Thread
While the saying “Cash is king” may be mostly true, a CFO who finds themselves in a
situation where their company is in dire need of positive cash flow may need to take financial
risks in order to keep the company up and running effectively. Considering that in this situation
the CFO must obtain sufficient funding for the company until their revolutionary product can be
sold, he or she must decide how best to achieve a cash flow that will sustain the organization in
the meantime. One possible way this could be achieved is to utilize venture capital. According
to research conducted by Gompers and Lerner, venture capital can possibly fill the void for a
company with an uncertain future as it is meant for “providing capital to firms that might
otherwise have difficulty attracting financing” (2001). If the CFO would be able to obtain
enough funds from venture capital investments, the organization should be able to keep a
positive cash flow until the time that funds from the new product begins to come in.
Those who hold leadership positions within an organization must also always keep a
close relationship with the organization’s stakeholders and ensure that they are happy with the
direction the organization is heading. According to research conducted by Beer and Micheli,
organizations must respond appropriately to the pressures exerted (or the opportunities offered)
by multiple institutional logics in their field, in order to maintain legitimacy in the eyes of
stakeholders” (2017). In this example, the organization may be able to retain legitimacy with the
stakeholders and keep them satisfied by proving that the company is able to prove that the new
product will revolutionize the industry while simultaneously showing that adequate cash flow
can be maintained in the meantime. If the organization can present a plan of action for obtaining
funds and provide evidence to the new product’s projected success, the stakeholders should be
completely on board.
Showing Page:
BUSI 530 Discussion Board Forum 3 Thread
Beer, H., & Micheli, P. (2017). How performance measurement influences stakeholders in not
for profit organizations. International Journal of Operations & Production Management.
Vol 37, p. 1164-1184. Retrieved from https://www-emeraldinsight-
Gompers, P. & Lerner, J. (2001). The Venture Capital Revolution. The Journal of Economic
Perspectives. Vol 15, p. 145-168. Retrieved from https://www-jstor-

Unformatted Attachment Preview

Name: Description: ...
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.