You Make the Call-Situation 3

question 43

Essay

You Make the Call-Situation 3
Cameron Products, Inc., used as an example in chapter 10, is an actual firm (although some of the facts were changed to maintain confidentiality). Kate Lynn bought the firm from its founding owners and moved its operations to her hometown. Although she estimated the firm's asset needs and financing requirements, she cannot be certain that these projections will be realized. The figures merely represent the most likely case. Lynn also made some projections that she considers to be the worst-case and best-case sales and profit figures. If things do not go well, the firm might have sales of only $200,000 in its first year. However, if the potential of the business is realized, Lynn believes that sales could be as high as $325,000. If she needs any additional financing beyond the existing line of credit, she could conceivably borrow another $5,000 in short-term debt from the bank by pledging some personal investments. Any additional financing would need to come from Lynn herself, thereby increasing her equity stake in the business.
[Source: Personal conversation with Kate Lynn. (Numbers are hypothetical.)]

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Definitions:

Interracial Marriages

Marriages between individuals of different racial backgrounds, which have historically faced legal and social challenges.

Social Standing

An individual's or group's position within a societal hierarchy, determined by factors such as wealth, occupation, education, and family background.

Rebellious

Characterized by resistance against authority or control, often manifested in actions or attitudes seeking to bring about change in societal norms, policies, or personal circumstances.

Fundamental Constitutions

Refers to essential laws or principles that form the foundation of a government or organization.