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Unformatted text preview: Chapter 1 HW 1-9 Internal -Managers -Directors -Financial Management -M &A External -Customers -Regulators -Creditors -Investors 1-10 Planning Activities: A business plan is developed that describes the company's purpose, strategy, and tactics for its activit ies, and i t assists managers in focusing their effort to exceed obstacles and opportunities. F inancing Activities: methods that companies use to raise the money to pay for these needs: equity investors and creditors. I nvesting: acquisition of maintenance of investments for purposes of selling products and providing services, and for the purpose of investing excess cash. Operating assets: investments in land, buildings, equipment, legal r ights, information systems, and similar assets. Financial assets: cash in securities such as other companies' equity stock, corporate and government bonds, and money market funds. Operating: represent the "car rying out" of the business plan given i ts financing and investing activities. Five possible components: R&D, procurement, production, marketing, and administration. 1-18 Yes it is a good indicator for future t rends because a comparison of statements over several periods can reveal the direction, speed, and extent of a t rend. 1-28 The concept time value of money states than an entity prefers present consumption more than future consumption and is used in present value theory. This relates to valuation because the basic valuation is present value theory. 1-30 1-32 ...
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This note was uploaded on 07/02/2011 for the course FINA 470 taught by Professor Austin during the Spring '11 term at South Carolina.
- Spring '11