1. What are contingent liabilities and could you give some examples of contingent liabilities? Which two conditions have to be met in order to report a contingent liability on a balance sheet?
2. What is cost-volume-profit analysis and what are the important assumptions of this analysis?
3. What are the basic differences between preferred stock and common stock? What are the typical features of preferred stock?
4. Why do companies give stock-based compensation (e.g. stock options) to employee? Please describe some examples of stock-based compensations.