Why is it important to include seasonality in financial projections?
What will be an ideal response?
Even though a firm may exhibit sales growth year to year, seasonality can lead to several months of depressed sales and low cash flows. Not being financially prepared for these periods can strain a firm’s finances to the point of bankruptcy.
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An advantage of the Computer Aided Software Engineering (CASE) model tool, which transforms the structure diagram into machine language, is
a. it facilitates the auditors review of the system b. it ensures that firm will use a specific CASE tool and vendor c. it forces all system changes to be made through the data flow diagrams d. it reduces the analysis required in designing the system
Describe what bond provisions exist
In a limited liability partnership, partners have limited liability as long as they do not participate in the management of the business
a. True b. False
Which of the following best describes corporate bonds?
A. Short-term debt financing B. Bank account C. Long-term equity financing D. Long-term debt financing E. Short-term equity financing