After reading Chapters 10, 11, and 12, review the questions below. Choose and post your response to one (1) question. Then review and reply to at least one(1) classmate who posted their response to a different question. For example, if you posted a reply to question 1, review and reply to a classmate who posted on questions 2, or 3.

• Question 1: Explain the purpose of the income statement and balance sheets and what determines a companys profitability? What is the relationship between an income statement and a balance sheet?
• Question 2: How are a start-ups financing requirements estimated? What are some of the basic principles that govern the financing of a firm? Why are they important?
• Question 3: Assume that you are starting a business for the first time. What do you believe are the greatest personal obstacles to obtaining funds for the new venture? Why?