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i. Many business and economic time series have a recurring seasonal pattern.
ii. One component of a time series is cyclical variation. An example of cyclical variation is the business cycle that consists of periods of prosperity followed by periods of recession, depression, and recovery.
iii. Episodic and residual variations can be projected into the future.
Capital Providers
Individuals or institutions that lend money or invest in businesses with the expectation of receiving a return on their capital.
Bargaining Power
The ability of a party to exert influence over another party in negotiations to obtain favorable terms.
Financial Statements
Financial statements are formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.
Shareholder Lawsuits
Legal actions initiated by investors against a corporation’s management or board, typically for breaches of fiduciary duty.
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