Why do businesses spend time effort and money, Financial Management

Assignment Help:

Why do businesses spend time, effort, and money to produce forecasts?  Explain.

Businesses fail or succeed depending on how well prepared they are to deal with the situations they confront in the future.  Thus they expend considerable sums making approximation (forecasts) of what the future situation is likely to be.  Businesses develop fresh products, set production quotas and select financing resource based on forecasts about the future economic environment and the firm's condition.  If economists forecast interest rates will be relatively high, for instance, firms may plan to defer expansion and limit borrowing plans.

 


Related Discussions:- Why do businesses spend time effort and money

Financial control and control of working capital, a) Sponsorship - refers t...

a) Sponsorship - refers to monetary gifts or donations in support of a business or an event venture in return for a dominant display of the sponsor's name. In this case, FC Barcelo

Option adjusted spread, The formula explained in the above paragraph ...

The formula explained in the above paragraph enables the investor to compute the value of a bond with an embedded option as the difference between the value of an

What are the negative consequences of a company holding, What are the negat...

What are the negative consequences of a company holding too much cash? A company holding in excess of cash would be giving up the opportunity to invest more in income producing

Relationship b/w bond''s market price and yield to maturity, What is the re...

What is the relationship between a bond's market price and its promised yield to maturity?  Explain. A bond's market price reckon on its yield to maturity (YTM).  When a bond h

Explain the post-acquisition effect on eps, Post-acquisition Effect on EPS...

Post-acquisition Effect on EPS If the consideration is completely in shares, one of the effects would be a dilution in EPS suffered by Predator Company. The effect of dilution

Operating cycle, application of the operating cycle to a vegetable company

application of the operating cycle to a vegetable company

Explain the aspects of financing decision, Explain the aspects of financing...

Explain the aspects of financing decision The financing decision covers two interrelated aspects: (1) capital structure theory (2) capital structure decision.

Operating cycle , using the operating cycle and any other financial managem...

using the operating cycle and any other financial management knowledge,discuss the applicabilty of such cycle to poultry

State about the quick ratio - position ratios, State about the Quick ratio ...

State about the Quick ratio or acid test Quick ratio = Current assets less inventories /Current liabilities(times) This  ratio  measures  immediate  solvency  of  a  busin

Financial statement analysis report, Financial statement analysis report: ...

Financial statement analysis report: 1. Perform a comparative analysis (horizontal analysis). Analyze two items on the balance sheet and two items on the income statement for

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd