Question $2$

a$)$ In recent times, a number of financial analysts have commented on the

rising disappointment with the usefulness and reliability of the

information contained in some companies' income statements.

Required:

Discuss the extent to which a company's statement of cash flows may be

more useful and reliable than its income statement. $(7$marks$)$

b$)$ It has been suggested that the ultimate reason for business failure is

poor leadership. According to business guru, Brian Tracy, 'Leadership is

the most important single factor in determining business success or failure

in our competitive, turbulent, fast$-$moving economy.

Required: Discuss four major reasons why businesses fail

marks$)$