Name _Lauren Sutherland_____Chapter 181. Name three finance functions important to the firm’s overall operations and performance.Three finance functions important to the firm’s overall operations and performance is financial planning, budgeting, and establishment of financial control.2. What three primary financial problems cause firms to fail?Three primary financial problems cause firms to fail is under-capitalization, poor control of cash flow, and inadequate expense control.3. How do short-term and long-term financial forecasters differ?Short-term financial forecasters funds need for a year or less, monthly expenses, unanticipated emergencies, and cash flow problems. While long term financing funds needed for more than a year, new product development, and new facilities.4. What is the purpose of preparing budgets in an organization? Can you identify three different types of budgets?The purpose of preparing budgets in an organization that it sets forth management expectation for revenues and becomes the organizations primary guide for the financial operations as was as expected financial needs. Three type of budgets is capital, cash, and operating.5. Money has time value. What does this mean?Money has time value means money can grow over time through interest earned compounded.6. Why is accounts receivable a financial concern to the firm?Accounts receivable to financial concern to the firm is providing credit to the customer is often necessary to keep current customers happy and attract new customers.7. What is factoring? What are some of the considerations factors consider in establishing their discount rate?Factoring is the process of selling accounts receivable for case. Some considerations factors consider in establishing their discount rate is factors charge more than banks but many small businesses don’t qualify for loans.8. What are the two major forms of debt financing available to a firm?Two major forms of debt financing available to a firm is selling bonds and borrowing from individuals, banks, and other financial institutions.9. How does debt financing differ from equity financing?Debt financing must be repaid at maturity while there is no obligation to repay equity financing. Interest must be paid on debt while the company is under no obligation to issue dividend on equity financing.10. What are the three major forms of equity financing available to a firm?Three major forms of equity financing available to a firm is sale of a company stock, retained earnings, venture capital
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