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1. Why must a financial manager have an integrated understanding of the five basic finance functions? Why is the corporate governance function considered a finance function? Why has the risk management function become more important in recent years?
2. Which of the following statements about financial statement forecasting methods is most correct?
a) For-profit and not-for-profit businesses use totally different approaches to financial forecasting.
b) In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the cash account.
c) In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the equity account.
d) In the constant growth (percentage of sales) method, the balance sheet is automatically balanced after one pass (one iteration).
e) None of the statements above is correct.
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