Describe the goal of financial management and give an example of a management compensation program which is designed to encourage managers to adhere to that goal.

Describe the goal of financial management and give an example of a management compensation program which is designed to encourage managers to adhere to that goal. (2 Marks)

Describe two types of business organizations in which you could obtain an ownership position while enjoying limited liability. Provide an example of a type of firm that you might find utilizing each business type. (4 Marks)

Explain the effects depreciation has on both the cash flows and the statement of comprehensive incomes of a firm. (2 Marks)

What factors might make the comparison of the financial statements between two firms in the same industry difficult? (2 Marks)

The financial manager of ABC, Inc. would like to somehow do a comparison of financial statements to determine how ABC, Inc. is performing both historically and competitively. Develop and explain a plan for performing these comparisons. (2 Marks)

The Vice President of Finance of Alpha, Inc. wants to improve the current ratio on the company’s next financial statement. Explain what he/she can legitimately do now to help accomplish this goal. Provide specific examples in your answer. (3 Marks)

You are considering two lottery payment streams. Choice A pays $1,000 today and choice B pays $1,750 at the end of five years from now. Using a discount rate of 5%, based on present values, which would you choose? Using the same discount rate of 5%, based on future values, which would you choose? What do your results suggest as a general rule for approaching such problems? (Make your choices based purely on the time value of money.) (3 Marks)

Some financial advisors recommend you increase the amount of federal income taxes withheld from your pay cheque each month so that you will get a larger refund come April. That is, you take home less today but get a bigger lump sum when you get your refund. Based on your knowledge of the time value of money, what do you think of this idea? Explain. (2 Marks)

Requirements: 4-6 sentences for each question