Pitfalls When Forecasting Earnings Include Failure to Consider

question 5

Multiple Choice

Pitfalls when forecasting earnings include failure to consider:

I. capital adequacy.
II. capacity constraints.
III. anticipated return on equity.
IV. new management.

• A)I and III
• B)II and IV
• C)I, III, and IV
• D)I, II, and III

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Definitions:

Opposing Party

The other side in a legal dispute or litigation.

Work Product Doctrine

A legal principle that protects materials prepared in anticipation of litigation from being disclosed to the opposing party.

Case Preparation

The process of organizing facts, evidence, and legal arguments prior to presenting a case in court or to another decision-making body.

Trial

A formal examination of evidence before a judge, and possibly a jury, in order to decide guilt in a case of criminal or civil proceedings.