1) What are four general phases of the working capital cycle? 2) What are the three primary sources of short-term funds? 3) An organization\'s short-term investment options for idle cash include what four areas? List and provide their characteristics. 4) Discuss the term float. Solution 1) What are four general phases of the working capital cycle? 2) What are the three primary sources of short-term funds? Trade credit (borrowing from suppliers), bank loans, and commercial paper (selling short-term debt securities in the open market) 3) An organization\'s short-term investment options for idle cash include what four areas? List and provide their characteristics. Savings Accounts: These accounts are the least profitable type of short-term investments. Savings accounts are the most simple, liquid types of short-term investments, but in return for being easily accessible, they offer low yields. Most savings accounts do not even keep up with inflation, so they should not be used to store money over long periods of time. Certificates of Deposit (CD): CDs are one of the most common types of short-term investments. When you put your money into a CD, you agree not to withdraw it for a specific period of time, in return for a higher yield. CD lengths range from as little as three months to as long as five years. CDs are federally insured, so they are one of the safest types of short-term investments; yet, they still offer a reasonable yield. Money Market Funds: These are typically liquid like savings accounts, but they offer a better yield. The downside of most money market funds is that they are not federally insured, unlike other types of short-term investments. This makes money market funds a higher-risk vehicle for short-term savings. Treasury Bills and Bonds: These provide flexible short-term investment terms of four weeks to one year. Treasury bills are designed for short-term savings and offer an extremely low yield. Bonds offer slightly more flexibility, but they may be less secure for short-term savings than treasury bills. Reference: Thorp, Edward (2010). Kelly Capital Growth Investment Criterion. World Scientific. ISBN 9789814293495. Retrieved 2010. 4) Discuss the term float. Money in the banking system that is briefly counted twice due to delays in processing checks. Float is created when a bank credits a customer.