Assignment

1. In your opinion which of the financial statements that we have looked at- income statement, balance sheet and cash flow- is the most important for a start up company and why? Give pros and cons. (HERE CHOOSE CASH FLOW AND RIGHT ABOUT IT)

2. Give an example of ratio analysis and explain how it is helpful for a company. Compare its benefit for a start up compared to a mature company.

3. Explain what a "pass through" entity is and how such an entity is affected by higher (or lower) personal income tax versus higher ( or lower) pass through income tax rates.

4. Explain one way that the Federal Reserve Board controls the supply of money in the economy and what difference it makes to the economy if the money supply is increased or decreased.