07 Jun Question 1. The income statement and the o
Question
1. The income statement and the operating section of the cash flow statement present a companys
results in very different formats. In your opinion, which statement is more important to
shareholders? To company management? To creditors? Explain your responses
2. If you were starting a new business what type of organization, ie. sole proprietorship, partnership,
limited liability company or corporation, would you select? What would be the advantages and
disadvantages of your selected organization? Would you plan to change the type of organization
structure during the life of your business? Why or why not?
3. As you begin to plan for your new company, you decide that it will be important to hire a financial
manager. Discuss the three areas of your company operations that you expect the financial
manager to be responsible for.
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