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What is it called when a firm's sales revenues are greater than its expenses?
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An equity issue sold to the firms existing stockholders is called?
A general cash offer
Is a firms comprehensive income always the same as its net income?
Is comprehensive income both greater than or less than net income or just either one
How are cash flows and the firms stock price related?
In an ideal world, the value placed on a shares value is the current value of all future dividends issues. The greater a firms cash flow, the higher you would expect the dividend to be. Not living in the real world, and not having a crystal ball, the actual share price is determined more by market sentiment and speculation. Thus, there is often no real relationship between a firms cash flow, and its stock price.
What are the five areas in the accounting profession?
Had you visited St. Charles, Illinois (about fifty miles southwest of Chicago), back in 2001, you would have noticed an impressive training and conference center owned by Arthur Andersen (then one of the so-called "Big 5" public accounting firms). Had you gone in, you could have toured a room dedicated to the history of Arthur Andersen, a proud firm with eighty-nine years of corporate history. You'd have learned how a company started by a young accounting professor from Chicago grew into one of the world's largest public accounting firms, with twenty-eight thousand employees and annual revenues of over $4 billion.
Whole salers are firms that sell driectly to the consumer?
Retailers are firms that sell directly to the consumer, wholesalers are the firms that supply the retailers goods to sale to the consumers.
How do investment bankers generate revenues for their firms?
Investment bankers can generate revenues for their firms by the amount of money they bring in from their customers. By bringing in money, the firm will have more to invest.
Why firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses. Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Who are the market leaders in anthracite mining?
Pennsylvania had 31 anthracite mines in 2001. Leading anthracite-mining firms included Bradford Coal Company (2002 revenues, $19 million), Anthracite Industries, Inc. (2002 revenues, $8.2 million), and Reading Anthracite (2002 revenues, $3.4 million).
Is the importance of financial managers to firms with large cash inflows greater than for firms with smaller cash flows?
true
Why do Firms trying to avoid competition?
Firms try to avoid competition so that they can set higher profits and earn greater profits.
Why do firms become monopolies?
Two main reasons: 1. There are greater profits to be gained by being a monopoly, either in the form of lower costs (economies of scale) or higher revenues (since all the industry demand is supplied by one company). 2. Less uncertainty. You don't have to worry about competition.
Why can firms not always reduce prices until they increase sales and profits?
if marginal production costs exceed marginal revenues, the firm will suffer losses, not profits.
What is monopolist's marginal revenues less than the price of its goods?
because the monopolist firms are price maker and they can set any price they want and the customers are not perfect knowleged
Why do firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses.Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
How does a firm know when it can afford to hire more workers?
if the MRP is greater than a firms MC
What is One of the best ways for firms to enhance customer satisfaction is by providing?
Greater Value on Products
What are a firms profit at the break-even point?
Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.
