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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.
Q. Describes the Concept of Time value of Money? 'Time value of money' signifies that the value of a unit of money is different in different time periods. The worth of a sum of
Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand. If the demand for bananas rises, a shortage is made at the origin
What is the role of investment banking in investment intermediaries? Investment banks: These banks assist corporations or governments into the issue of new debt or equity
Illustrations of substantive tests Agree a sample of wages payments to the existence of these individuals and personnel records. Agree a sample of cashbook payments to
john has two options from which to choose one: (a)Either to pay shs24m for the motor vehicle now . OR (b)To pay for the car in four equal regular installments of shs7m ea
Reforms and Outlook Pension funds in India is an area that is yet to be fully explored compared to those of other economies of the world. The pension reforms are expected to fa
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A yield spread between any two bond issues can be easily computed when the maturity date for both these issues is same. The yield spread between these two bond
It shows the date and corresponding prices at which the issuer can call back bonds. The issuer pays higher premium over the par value of the bond if the bond is c
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