Discuss the basic functions that budgets perform for a firm
What will be an ideal response?
Answer: The budget is a short-term financial plan. It forecasts in detail sales, payments for variable and fixed costs, and other required payments such as interest, dividends, and taxes. One of the budgets most important functions is anticipating financing needs so that arrangements can be made well in advance. It is also a good instrument for monitoring performance and making adjustments as the budgeting period unfolds.
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All of the following are true regarding an Earthquake Endorsement to a homeowners policy, EXCEPT:
A) Covers a loss caused by volcanic eruption. B) Covers all shocks that occur within a 72 hour period. C) The total deductible will not be less than $250. D) Provides an indirect loss coverage.
As a large well established business you decided you need to raise some capital. What are the primary methods you might consider in order to raise the needed capital?