Question

John has been requested to determine the amount of fixed assets that is required to support each dollar of sales for his firm. To perform this task, the information he needs to collect include the firm's :

I. current amount of current assets

II. current level of current liabilities

III. current level of interest expenses

IV. maximum sales over the past 10 year sales

Multiple Choice

• I, II, and III only

• II, III, and IV only

• I and III only

• I, II, III, and IV

• none of the given options is required

As Hoosier Game Manufacturing is a _______________, it is actually a business with a distinct legal entity and can be treated as a legal "person".

Multiple Choice

• limited partnership

• general partnership

• corporation

• unlimited liability company

• sole proprietorship

Peter is doing the financial planning for his firm, he should cover the ____________.

I.analysis of its customer base
II.determination of its labor requirements
III. establishment of its employee health insurance
IV. development of plans to contend with its unexpected events

Multiple Choice

• I, II, III, and IV

• IV only

• I, II, and III only

• I and III only

• I, III, and IV only

Answer 1

John has been requested to determine the amount of fixed assets that is required to support each dollar of sales for his firm. The information required to perform this task, he needs to collect : - none of the given options is required.

Current amount of current assets, current level of current liabilities, current level of interest expenses cannot help to determine the amount of fixed assets like physical space , fixtures, equipment etc that are different from current assets.

As Hoosier Game Manufacturing is a Corporation, it is actually a business with a distinct legal entity and can be treated as legal 'person'.

The other forms of business organisation like sole proprietorship is not considered a separate legal entity as these types of structure are not distinct from its owner but corporations are considered distinct legal entity.

Peter is doing financial planning for his firm, he should cover the - analysis of its Customer base, determination of its labor requirements, establishment of its employee health insurance and development of plans to contend with its unexpected events.

These aspects like human resources, risk management , employee benefits need to be considered for financial planning for a firm