Why is the examination of the balance sheet and income statement only not an adequate evaluation of a firm? What else should be done?
What will be an ideal response?
The most obvious part missing is an examination of the statement of cash flows. Understanding cash flow statements helps identify the extent to which cash was generate from operating activities, how much cash was invested, and how much cash was used to finance the activities with which the firm was involved.
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The competitive advantage test tests if the strategy will help the firm attain a ____________ and ______________ competitive advantage.
Fill in the blank(s) with the appropriate word(s).
When the exchange rate for the euro changes from $1.20 to $1.00, then, holding everything else constant, the euro has
A) appreciated and German cars sold in the United States become more expensive. B) appreciated and German cars sold in the United States become less expensive. C) depreciated and American wheat sold in Germany becomes more expensive. D) depreciated and American wheat sold in Germany becomes less expensive.