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Why do businesses spend time, effort, and money to produce forecasts? Explain.
Businesses fail or succeed depending on how well prepared they are to deal with the situations they confront in the future. Thus they expend considerable sums making approximation (forecasts) of what the future situation is likely to be. Businesses develop fresh products, set production quotas and select financing resource based on forecasts about the future economic environment and the firm's condition. If economists forecast interest rates will be relatively high, for instance, firms may plan to defer expansion and limit borrowing plans.
TYPES OF FINANCE FUNCTIONS/ DECISIONS The most main decisions in finance relate to procuring funds, investing them in profitable projects or assets, operate for the year and a
I am trying to solve this formula: 2/10, net 30. In the book I am reading they have 2% x 360 ------- ------ = 2.04% x 18=36.72% 100-2% (30-10) I want to know how the
This question tested earnings per share and P/E ratio. The widely held of the marks were for calculations and a key test was the distinction between what transactions affect basic
What is Rationale and behind profitability maximisation Rationale & behind profitability maximisation, as a guide to financial decision making, is simple. Profit is a test of e
a) Distinguish among standard costing and budgetary control. (b)"Calculation of variances in standard costing is not an end in itself, but a means to an end" Brief discussion
Q. Describe about Accountants Report? Accountants' Report - Formal document which communicates an independent accountant's: (1) expression of limited assurance on FINANCIA
#The following items are found in the The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000.
List and explain the three financial factors that influence the value of a business. The three factors that influence the value of a firm's stock price are timing , cash flow
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When an investor invests in fixed income securities, he receives returns from one or more of the following sources: Coupon Interest payment.
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