Capital Allocation Process
i. Choose a research topic from the chapter readings or from the list provided by your professor.
ii. Research/find a minimum at least four (4), preferably five (5) or more, different peer- reviewed articles on your topic from the University of the Cumberlands Library online business database. The article(s) must be relevant and from a peer-reviewed source. While you may use relevant articles from any time frame, current/published within the last five (5) years are preferred. Using literature that is irrelevant or unrelated to the chosen topic will result in a point reduction.
iii. Write a four (4) to five (5) page double spaced paper in APA format discussing the findings on your specific topic in your own words. Note – paper length does not include cover page, abstract, or references page(s).
iv. Structure your paper as follows:
a. Cover page
b. Overview describing the importance of the research topic to current business and professional practice in your own words.
c. Purpose of Research should reflect the potential benefit of the topic to the current business and professional practice and the larger body of research.
d. Review of the Literature summarized in your own words. Note that this should not be a “copy and paste” of literature content, nor should this section be substantially filled with direct quotes from the article. A literature review is a summary of the major points and findings of each of the selected articles (with appropriate citations). Direct quotations should be used sparingly. Normally, this will be the largest section of your paper (this is not a requirement; just a general observation).
e. Practical Application of the literature. Describe how your findings from the relevant research literature can shape, inform, and improve current business and professional practice related to your chosen topic.
f. Conclusion in your own words
g. References formatted according to APA style requirements
Sample Solution
The capital allocation process is a critical component of business management which involves determining how available funds are going to be utilized in order to generate the greatest returns while also minimizing risk. Research on this topic has sought to identify best practices for allocating resources across different assets and investments, including both traditional ones such as stocks, bonds and commodities as well as alternative financial instruments like derivatives or private equity (Goyal & Welch 2007).
For instance, studies have explored how certain strategies – such as adopting active portfolio management approaches versus investing passively in index funds – may affect long term profitability (Goyal & Welch 2007). Additionally, research has been done looking into how incorporating greater diversification tactics when constructing a portfolio can reduce exposure particular risks related market volatility (Tufano 2016). Other work has examined impact taxation policies can have on overall performance measures by comparing results from firms that take advantage of tax efficient asset allocations versus those do not (Barbosa 2012).
Ultimately, understanding capital allocation process important given its implications modern business world. Through correctly identifying methods distributing resources individuals able make educated decisions concerning where best invest their money but also regulators hoping ensure safety soundness entire system. As such, researching topics around this helps provide insight into current trends within industry while equipping practitioners with knowledge needed to take appropriate action in any situation.
