1. Financial Ratios calculated and analysed in a particular situation depend on the user of the financial statements Expound the advantages and limitations of ratio analysis
2. Give a brief summary of forecasting to determine additional (discretionary) funding (financing) needed.
3. More can be said about risk, especially as to its nature, when we own more than one asset in our investment portfolio. Define risk and explain how risk is affected if we diversify our investment by holding a variety of securities?
4. Originally, the sole objective of the federal government in taxing income was to generate financing for government expenditures. Although this purpose continues to be important, social and economic objectives have been added. Substantiate the statement with enough explanations.
5. The finance department of an enterprise performs several functions in order to achieve the above objectives. The scope of finance function is very wide.