A. Preparing a cash flow forecast helps a company to avoid __________.

• net losses
• liquidity
• opportunity costs
• higher financing costs

B. Why are ethical issues complicated for businesses that operate in the global economy?

• Because their employees won't know what the laws are in other countries.
• Because they tend to have more employees.
• Because different cultures have different norms and values.
• Because they don't have as much moral character as small, local businesses.

C. The pro forma balance sheet shows how the __________ resulting from a strategic plan will be financed.

• AFN
• equity
• inventory
• sales forecast