Answer the following by numbers with references.

  1. Describe the goal of financial management.
  2. Identify the three main areas of concern in corporate finance.
  3. Explain the advantages and disadvantages of conducting business as a corporation.
  4. Explain the importance of the balance sheet and income statement in financial decision making.
  5. Describe the difference between average and marginal tax rates.
  6. Identify the sources and uses of cash represented on the statement of cash flows.
  7. Understand how short-term liquidity and long-term solvency measures are calculated and used.
  8. Describe how profitability measures are used to determine how efficiently the company manages its operations.
  9. Explain how the DuPont ratio is calculated and used to measure the level of debt financing.
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