Problem
Read about introductory topics in finance and financial statements to answer the following questions:
A. Compare and contrast the goals of profit maximization and shareholder wealth maximization.
B. What is the relationship between financial decisions and return risk?
C. Defina (a) "sole proprietorship", (b) "partnership", y (c) "corporation".
D. Describe a company's financial statements: Balance Sheet, Income Statement, and Statement of Cash Flows.
E. What is the difference between "gross profits", "operating profits" and "net income"?
F. What is the difference between "dividends" (dividend) and "interest expense" (interest expense)?
G. What is "net working capital"?; How does it differ from "gross working capital"?
H. Discuss the reasons why one firm can have a positive cash flow and have financial problems, while another firm with a negative cash flow is in good financial position.