Limitations of Break-Even Analysis:

Limitations of Break-Even Analysis: 1. The assumption that all costs and revenues are represented by straight lines in unrealistic. 2. Not all costs...

Benefits of Break-Even Analysis:

Benefits of Break-Even Analysis: 1. Charts are relatively easy to construct and interpret. 2. It provides useful guidelines to management on break-even...

What is the size, scope and economic contribution of small business?

What is the size, scope and economic contribution of small business? Vital role in American economy, generating about half of the U.S. gross domestic...

What are ways to become a business owner and facilitate success?

What are ways to become a business owner and facilitate success? Less risky to buy an established business or franchise, but more satisfying to some...

What are the opportunities and threats facing small businesses?

What are the opportunities and threats facing small businesses? Opportunities: market niches, personal customer service, lower overhead costs, technology. THREATS:...

What are funding options for small business?

What are funding options for small business? Personal resources of the founder (personal credit accounts, family, and friends) as well as bank loans,...

What is the typical entrepreneurial mindset and characteristics?

What is the typical entrepreneurial mindset and characteristics? Vision, self-reliance, energy, confidence, tolerance of uncertainty, and tolerance...

Why do entrepreneurs launch small businesses?

Why do entrepreneurs launch small businesses? Advantages can far outweigh the risks and hard work, most who do are seeking financial success, independence,...

How do financial managers evaluate capital budgeting proposals?

How do financial managers evaluate capital budgeting proposals? Time value of money recognizes that sooner the cash is received, the sooner it can...

How do financial managers acquire and manage current assets?

How do financial managers acquire and manage current assets? Firms must have cash, but cash earns little to no interest but can do other things with...

How do financial managers determine the firm's capital structure?

How do financial managers determine the firm's capital structure? Debt financing enables firm to finance activities without requiring owners to put...

How are the major sources of funds evaluated to meet a firm's short-term and long-term financial needs?

How are the major sources of funds evaluated to meet a firm's short-term and long-term financial needs? Established firms have several sources of...

What are the tools financial managers use to evaluate their company's financial conditions and develop future plans?

What are the tools financial managers use to evaluate their company's financial conditions and develop future plans? Computing ratios based on key...

What is the goal of financial management and what issues do financial managers confront?

What is the goal of financial management and what issues do financial managers confront? GOALS: maximize the value of the firm to its owners, as well...

What are the advantages and disadvantages of franchising?

What are the advantages and disadvantages of franchising? PROS: franchiser gains revenue without the need to invest its own money, franchisee gains...

Why are limited liability companies becoming an increasingly popular form of ownership?

Why are limited liability companies becoming an increasingly popular form of ownership? Avoid problem of double taxation endemic to C corps but still...

Why have corporations become the dominant form of business ownership?

Why have corporations become the dominant form of business ownership? Most common form of corporation is C CORPORATION, all stockholders have limited...

What are the pros and cons of partnerships?

What are the pros and cons of partnerships? General Partnership PROS: pooled financial resources, shared workload to take advantage of complimentary...