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True or False.
1. Finance is the allocation of limited resources to the unlimited needs of business.
2. Business is purely profit-oriented.
3.
Step by step
Solved in 2 steps
- True or False. 1. Business is purely profit-oriented. 2. Finance is the function in business which is responsible for managing the aspect of the operations that deals with money matters. 3.Finance is the allocation of limited resources to the unlimited needs of business.Management accounting reports on the profitability (and therefore the efficiency) of a business, whereas financial accounting reports om specifically what is causing problems and how to fix them. True or false?According to the textbook, the definition of asset is "asset are resources that are controlled by a business from which the economic benefits are expected to flow to the business.", the definition of liabilities are "they represents negative future cash flow for the enterprise."But asset included liabilities, isn' t that contradict the definition of asset?
- Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation. Explain alternative ways a business can use free cash flow. Provide examples.Since the goal of a business is to make profit, a performance report consists of only financial measures is the best.O TrueO FalseThe financial needs of a business do not include the following? A. Investors must receive a very good rate of return from a financial institution. B. A business must meet its financial obligations and pay its debts C. To stay competitive, but a firm must finance future growth and development D. All of a business’s activities must be profitable
- Indicate whether the following statements are (True) or (False) and correct the false statements Profit maximization is the main goal of a business organization. The net accounting profit is the difference between the cash inflows and cash outflows of a given project. Financial markets are intermediaries that channel the savings of individual, businesses, and governments into loans or investments.Profit maximization objective helps to: a. Increase the liquidity position of the business b. Reduce the risk of the business c. Reduce the investments of the business d. Increase the reserve of the business1. Explain and provide an example of how a company can generate lots of profits, but still go out of business because they don’t have any cash. 2. How would you state the basic goal of a non-profit firm?
- Do expenses imply "sacrifices" required in the effort the business makes to generate revenue? Correct FalseAn advantage of small businesses is that the management of assets and liabilities is not a difficult task a .The above statement is True b .The above statement is neither True or false c .The above statement is False d .The above statement is an example of the disadvantages of small businessWhich of the following objectives of the company creates immoral practices such as: corrupt practice, unfair trade practice, etc.? Select one: A. None of the given options B. Profit Maximization C. Welfare Maximization D. Wealth Maximization