1. Financial statements are a vital communication tool for key stakeholders. Discuss this statement considering the role of financial record keeping in the survival and growth of small businesses.

2. Profit maximisation can be achieved by reducing costs and/or increasing revenue. In a conversation with a colleague, she states the key factors that increase the probability of profit maximisation are management skill; a motivated and trained workforce; investment in technology and advertising. Pick at least one of these factors and discuss how they can contribute to cost minimisation and revenue maximisation.

3. What do you understand by the term opportunity cost and why is it important in business decisions?

Please can you expain these topics, approximately 300 words each.