The Management Discussion and Analysis (MDA)section of the Annual Report

question 59

Multiple Choice

The Management Discussion and Analysis (MDA) section of the annual report concentrates on

• A)analyzing the possible acquisition of other companies,and how those new acquisitions would mesh within the current corporate structure.
• B)describing the background of management personnel,how long they have held their current position,and how long and in what capacities each manager has worked for the company.
• C)examining how the company is performing relative to other companies in the industry.
• D)explaining the major changes in the operating results,liquidity and capital resources.
• E)explaining the auditor report.

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Definitions:

Material Facts

Important information that could influence decisions or outcomes in legal, financial, or other professional contexts.

Federal Antitrust Laws

Laws created by the federal government to promote competition among businesses and prevent monopolies or unfair business practices that harm consumers.

Dishonest Franchisors

Franchisors who engage in fraudulent practices or misrepresentations towards their franchisees.

Prospective Franchisees

Individuals or entities considering and evaluating the opportunity to operate a branch of a franchise.