What does liquidity measure? Explain the trade-ff a firm faces between high-liquidity and low-liquidity levels. Provide an example. Use your own words.

Critical Thinking – Chapter 01.

What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant. Use your own words.

 

Critical Thinking – Chapter 02.

What does liquidity measure? Explain the trade-ff a firm faces between high-liquidity and low-liquidity levels. Provide an example. Use your own words.

 

Critical Thinking – Chapter 03.

What type of information do common-size financial statements reveal about the firm? What is the best use for these common-size statements? Provide examples. Use your own words.

 

Critical Thinking – Chapter 04.

Suppose you deposit a large sum in an account that has a low-interest rate & simultaneously deposit a small amount in an account that has a high-interest rate. Which account will have the largest future value? Provide an example. Use your own words.

 

Critical Thinking – Chapter 05.

If you were an athlete negotiating a contract, would you want a big signing bonus payable immediately and smaller payments in the future, or vice versa? How about looking at it from the team’s perspective?

Fully explain using your own words.