assignment

CRITICAL THINKING 1. Budgets are designed to keep decision makers informed of progress compared to company plans. An important theme of this book is the need for managers to be flexible so that they can adapt quickly to rapidly changing conditions. This often means modifying previous plans. How do managers stay within the confines of budgets when they must shift gears to accommodate a rapidly changing world? 2. What are the primary sources of short-term funds for new business owners? What are the major sources of long-term funds? 3. Why does a financial manager need to understand the accounting information if the firm has a trained accountant on its staff? 4. Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares of stock