OTE2601 OCTOBER
NOVEMBER
PORTFOLIO
(COMPLETE ANSWERS)
2025 - DUE October
2025
[Document subtitle]
[School]
[Course title]
,OTE2601 OCTOBER NOVEMBER PORTFOLIO (COMPLETE ANSWERS) 2025 - DUE October 2025
Course
Orientation to teaching Economic and Management (OTE2601)
Institution
University Of South Africa (Unisa)
Book
Teaching Economics and Management Sciences in the Senior Phase
OTE2601 OCTOBER .. NOVEMBER PORTFOLIO (COMPLETE ANSWERS) 2025 - DUE October 2025;
100% TRUSTED Complete, trusted solutions and explanations
As a newly appointed financial manager of a startup company, you are tasked with ensuring the
financial stability and growth of the business. The company's goal is to expand its operations
and increase profitability. Ensure your response to the following question is well-structured,
clear, and concise. Question Illustrate how and why you would execute the following five
financial management functions to achieve the company's goals: 1. Estimation of capital
requirements (12)
Estimation of Capital Requirements
As a newly appointed financial manager, my first responsibility is to estimate how much capital
the startup requires to achieve both stability and growth. This process is critical because
underestimating may lead to liquidity crises, while overestimating may result in idle funds and
increased financing costs. I would execute this function through the following steps:
1. Assess Business Objectives
o I would align capital needs with the company’s expansion goals, such as entering
new markets, purchasing equipment, or hiring skilled personnel. This ensures
financial resources directly support strategic growth.
2. Forecast Operational Expenses
o I would prepare detailed budgets for fixed costs (e.g., rent, salaries, utilities) and
variable costs (e.g., raw materials, marketing). Accurate expense forecasting
avoids shortfalls that could disrupt operations.
3. Project Revenue and Cash Flows
, o Using realistic sales forecasts, I would project inflows and compare them with
expected outflows. This ensures the company maintains liquidity while funding
growth activities.
4. Determine Working Capital Needs
o I would calculate the funds needed to cover short-term obligations (inventory,
receivables, payables). Adequate working capital is vital for smooth daily
operations.
5. Consider Capital Investments
o I would estimate funds for long-term assets such as technology, equipment, and
infrastructure necessary for scaling operations.
6. Incorporate Contingency Reserves
o I would include a safety margin to cushion against unexpected costs, economic
downturns, or delayed revenues, ensuring financial resilience.
7. Differentiate Between Short-term and Long-term Needs
o By classifying capital requirements, I can recommend the appropriate financing
mix (e.g., short-term loans for working capital, equity or long-term debt for
expansion).
Why This is Important
Ensures Adequate Funding: Avoids underfunding that may stall operations or expansion.
Optimises Capital Utilisation: Prevents over-borrowing, reducing interest and debt
burden.
Supports Strategic Growth: Aligns resources with company goals, ensuring scalability.
Builds Investor Confidence: Well-documented estimates attract investors and lenders by
demonstrating financial discipline.
Estimation of Capital Requirements
As a newly appointed financial manager, my first responsibility is to estimate how much capital
the startup requires to achieve both stability and growth. This process is critical because
underestimating may lead to liquidity crises, while overestimating may result in idle funds and
increased financing costs. I would execute this function through the following steps:
NOVEMBER
PORTFOLIO
(COMPLETE ANSWERS)
2025 - DUE October
2025
[Document subtitle]
[School]
[Course title]
,OTE2601 OCTOBER NOVEMBER PORTFOLIO (COMPLETE ANSWERS) 2025 - DUE October 2025
Course
Orientation to teaching Economic and Management (OTE2601)
Institution
University Of South Africa (Unisa)
Book
Teaching Economics and Management Sciences in the Senior Phase
OTE2601 OCTOBER .. NOVEMBER PORTFOLIO (COMPLETE ANSWERS) 2025 - DUE October 2025;
100% TRUSTED Complete, trusted solutions and explanations
As a newly appointed financial manager of a startup company, you are tasked with ensuring the
financial stability and growth of the business. The company's goal is to expand its operations
and increase profitability. Ensure your response to the following question is well-structured,
clear, and concise. Question Illustrate how and why you would execute the following five
financial management functions to achieve the company's goals: 1. Estimation of capital
requirements (12)
Estimation of Capital Requirements
As a newly appointed financial manager, my first responsibility is to estimate how much capital
the startup requires to achieve both stability and growth. This process is critical because
underestimating may lead to liquidity crises, while overestimating may result in idle funds and
increased financing costs. I would execute this function through the following steps:
1. Assess Business Objectives
o I would align capital needs with the company’s expansion goals, such as entering
new markets, purchasing equipment, or hiring skilled personnel. This ensures
financial resources directly support strategic growth.
2. Forecast Operational Expenses
o I would prepare detailed budgets for fixed costs (e.g., rent, salaries, utilities) and
variable costs (e.g., raw materials, marketing). Accurate expense forecasting
avoids shortfalls that could disrupt operations.
3. Project Revenue and Cash Flows
, o Using realistic sales forecasts, I would project inflows and compare them with
expected outflows. This ensures the company maintains liquidity while funding
growth activities.
4. Determine Working Capital Needs
o I would calculate the funds needed to cover short-term obligations (inventory,
receivables, payables). Adequate working capital is vital for smooth daily
operations.
5. Consider Capital Investments
o I would estimate funds for long-term assets such as technology, equipment, and
infrastructure necessary for scaling operations.
6. Incorporate Contingency Reserves
o I would include a safety margin to cushion against unexpected costs, economic
downturns, or delayed revenues, ensuring financial resilience.
7. Differentiate Between Short-term and Long-term Needs
o By classifying capital requirements, I can recommend the appropriate financing
mix (e.g., short-term loans for working capital, equity or long-term debt for
expansion).
Why This is Important
Ensures Adequate Funding: Avoids underfunding that may stall operations or expansion.
Optimises Capital Utilisation: Prevents over-borrowing, reducing interest and debt
burden.
Supports Strategic Growth: Aligns resources with company goals, ensuring scalability.
Builds Investor Confidence: Well-documented estimates attract investors and lenders by
demonstrating financial discipline.
Estimation of Capital Requirements
As a newly appointed financial manager, my first responsibility is to estimate how much capital
the startup requires to achieve both stability and growth. This process is critical because
underestimating may lead to liquidity crises, while overestimating may result in idle funds and
increased financing costs. I would execute this function through the following steps:
