What are benefits of the budgeting process

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Reference no: EM133638005

Questions

1. What is the importance of financial information for entrepreneurs? Briefly describe the key components.

2. What are the benefits of the budgeting process?

3. How is the statistical forecasting technique of simple linear regression used in making a sales forecast?

4. Describe how an operating budget is constructed.

5. Describe how a cash-flow budget is constructed.

6. What are pro forma statements? How are they constructed? Be complete in your answer.

7. Describe how a capital budget is constructed.

8. One of the most popular capital-budgeting techniques is the payback method. How does this method work? Give an example.

9. Describe the NPV method. When would an entrepreneur use this method? Why?

10. Describe the IRR method. When would an entrepreneur use this method? Why?

Reference no: EM133638005

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