Small Companies Have Flourished for All the Following Reasons EXCEPT

question 35

Multiple Choice

Small companies have flourished for all the following reasons EXCEPT:

• A)they respond more quickly.
• B)they operate more effectively.
• C)they employ more skilled people.
• D)they often expand easily in mature industries.

Evaluate investment options based on future value and present value principles.

Understand the concept of present value and how to calculate it for different financial instruments.

Compare different financial scenarios to make informed financial decisions.

Calculate the future value of savings plans with varying interest rates and compounding periods.

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.

Statement of Cash Flows

A financial report that depicts how variations in income and balance sheet accounts affect the cash and cash equivalents, organized into the segments of operating activities, investing activities, and financing activities.

Operating Activities

Activities that relate to the primary operations of a company, such as sales, provision of services, and production.

Indirect Method

This approach is used in cash flow statements to report net income and adjust it for changes in assets and liabilities that affect cash but are not cash transactions themselves.