Discuss how firms can benefit from (1) related diversification
and also can benefit from (2) unrelated diversification. Discuss
some of the key concepts that can explain firm success or firm
failure from selecting one or the other diversification
strategy.
Discuss the importance of disclosing contingent assets and
contingent liabilities for a financial institution. How can these
contribute to a bank collapse?
What is financial leverage? How, and under what conditions, can
financial leverage benefit a company? How, and under what
conditions, can it harm a company?
Discuss the history of the U.S. Stock Markets, including trading
and market movement. How can financial markets serve individuals
and corporations in raising capital?
Miscalculations of
both financial statements can lead to poor allocation of resources
as well as poor cost control. It can lead to an incorrect
evaluation of the business with incorrect financial ratios such as
profitability ratios, operating margin, and profit margin.
Miscalculations on the income statement leads to miscalculations on
the operating activities on the cash flows statement.
What does everyone
think about this statement? Do you agree or disagree?