1.

• In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?
• Jensen Bank needs to decide whether or not to make a medium-term loan to Warner, Inc.
  • What aspects of Warner does the bank need to take into consideration when making its credit decision?
  • The bank is now specifically focusing on Warner's current assets. What considerations does the bank need to consider when assessing the effect Warner's accounts receivable and its inventory have on the credit decision?
  • Provide two examples of finished products where one is more liquid as inventory than the other. What accounts for this difference in liquidity?

2. (Moving the Capen House)

Watch the following video (approx. 8 minutes) before responding:

https://www.youtube.com/watch?v=jL4QzHZ15es&feature=player_embedded

Based on the work described by Frank Roark in his interview, construct a list of project work activities with IDs, descriptions, and predecessor tasks. Refer to the video to support your list of tasks.