Key reasons why a business may not want to hold too much or too little working capital.

 

 

Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation.

Sample Solution

Working capital, or total current assets minus total current liabilities, refers to the additional current assets that a company holds on its balance sheet as a liquidity cushion. Most current assets are funded by current liabilities and are expected to be converted back to cash within 12 months for payments on current liabilities due in the same cycle. Working capital is necessary to ensure uninterrupted operations, but it does not contribute directly to revenue generation or profitability. To the contrary, having too much working capital may hinder a company`s financial results when the funds sit idle until a liquidity need arises.

ndencies. This can be explained by the Lax parenting by his mother, in the absence of his father.

House’s strong dislike of his father has shaped his beliefs strongly. Trying to be as unlike his father he doesn’t respect authority, and has a very self destructive and impulsive personality. We can see his self destructive Vicodin use in the first season of the show. We can see his Id making his decisions as he is always looking for that immediate gratification. House rarely thinks about how his decisions affect others and rarely makes decisions based on his super ego. This makes House a very difficult person to be friends with.

One of the first things you notice on the show is the lengths House goes to, to avoid meeting his patients. This avoidant behavior is also seen in his personal relationships, or more aptly, the lack there of. House is a classic example of the Dismissive/avoidant attachment style. He never had a secure base to explore relationships because of his strained relationship with his father and the irregularity of his parents’ interactions with him. We can see the strain this has on all his relationships, Most clearly in his romantic relationship with Dr Cuddy. He was very nervous about the thought of her being too close to him. This led to him being extremely secretive and at times act like a pathological liar.

 

 

The 5 factor model, or “The big 5” is a trait theory that has been developed over many years. It identifies 5 core traits in all humans, namely, Openness/intellect, conscientiousness, extroversion, agreeableness, and neuroticism (Sharples, 2019). Each individual presents a different degree of each trait. For example someone like House is very high in the openness trait and is very creative, as can be seen in his unconventional methods to treat ailments. These ailments are also always extremely complex and require house to be very imaginative with his solutions; He does this with relative ease. On the other hand House is very low on the conscientiousness scale. He is very disorganized and unfocused. He is also extremely impulsive as was mentioned above. Although he is a brilliant doctor, House can be a very unreliable friend, him forgetting his lunches with Wilson is a running gag on the show. House shows both introverted and extroverted traits. His low sociability makes it seem as if he is an introvert however his dominance and extreme narcissism show otherwise. A great example of this ambivalence is how he doesn’t like spending time with his residents and yet plays pranks on them because of his strong need for attention. This shows he lies somewhere in the middle of the range. House is calm in the face of some of the most stressful situations and he is able to think of unique solutions under imme

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