Welcome to Module 5: Capital Management Online Discussion. Please be sure to read and follow the Online Discussion Etiquette Guidelines, which can be found in the syllabus, when you post your initial discussion and responses to your classmates. Discussions will be evaluated based on your ability to demonstrate your understanding of the relevant finance concepts in your answer to the discussion prompt or to your classmates, as well as on the quality of your writing. In finance, it can be difficult for discussion participants to refrain from opinion claims. Opinions are welcome, but only (!) if they are substantiated by claims of fact or appeals to theory. Any discussion post with an opinion claim without an associated statement of fact or an associated appeal to theory will not earn credit.

Responses to classmates are necessary to facilitate this course's online discussions. You must respond to at least two (2) of your classmates' posts. Your are encouraged to respond to your classmates' responses to your initial post. Your instructor will be reviewing and assessing your discussions and will help guide the discussion when necessary but will only occasionally post contributions. Be sure to read and understand the Online Discussions Rubric that will apply to this discussion and all future discussions in the course.

Instructions:

• Why is an effective working capital policy necessary for firms?