1. Why are sales forecasts important to developing a firm's financial forecast?
2. Give some examples of spontaneous and discretionary sources of financing.
3. What are the basic elements of a cash forecast?
4. How is a cash budget used in financial forecasting?
5. Describe the primary types of risks that a firm might face.
6. What is insurance and how is it used to manage risk?
7. What is a forward contract? Contrast a forward contract with a spot contract.
8. What are the limitations of forward contracts as tools for managing risk?
9. Define and contrast the following types of financial derivatives: Options, futures and forwards
10. What are the six factors that determine the value of an option contract?