Response to the following questions:
1. What is the "derived company objective" and what types of information about a company should be reported to satisfy this objective?
2. List the reasons why external users use information about a company's (a) economic resources and claims to these resources, (b) comprehensive income and its components, and (c) cash flows.
3. Define (a) return on investment, (b) risk, (c) financial flexibility, (d) liquidity, and (e) operating capability .