Capital Funding: Google Inc Case Study

576 Words2 Pages
Capital Funding The structure of Google, Inc. is the continual purchase of other business strategies and the continual implementation of new products to stay abreast of competition and for growth purposes. Google, Inc. is continually involved in looking for other businesses, such as Motorola, that contain business strategies that can be combined with Google's products and goals. They are also continually involved in research and development strategies to implement new products and upgrade existing products. These activities constantly require capital investments. The Nexus 7 is a seven inch tablet computer with gaming capabilities powered by Android software that Google has just brought to market in an effort to enter the tablet market (Miller). Google is taking orders and delivery will start in mid-July. The Nexus 7 project is being funded with commercial paper and promissory notes. The promissory notes are what funded the research and development part of the project. They are paid back over the long term. The commercial paper is what is funding the manufacturing of the Nexus 7. Commercial paper is a short term debt instrument typically used for financing short term liabilities (Investopedia). It is rarely issued for more than 270 days and usually is issued at a discount, which saves money on financing costs. The major benefit to commercial paper is it does not need registering with SEC as long as it is not more than the 270 days. Commercial paper is cost effective

More about Capital Funding: Google Inc Case Study

Open Document