Question: Diagram 1 below can be seen as a first principles way of looking at business. (This question is worth 1 point.) Answer 1: True or
Diagram 1 below can be seen as a first principles way of looking at business. (This question is worth 1 point.) Answer 1: True or False: _____ Question 2: Diagram 1 above can be seen as one way, not the only way, to look at business, placing finance at the center of business. (This question is worth 1 point.) Answer 2: True or False: _____ Question 3: Free Cash Flow is an important finance framework because, properly used, the framework can guide forprofit companies through the process of getting free cash from non-traditional sources such as governmental and philanthropic organizations in order for companies to increase their profits, assuming the shareholder supremacy corporate objective, rather than the stakeholder view of corporate objectives. (This question is worth 1 point.) Answer 3: True or False: _____ Question 4: The accounting term Profitability is a substitute term for Free Cash Flow just like the terms Earnings and Net Income are substitute terms for Free Cash Flow. (This question is worth 1 point.) Answer 4: True or False: _____ Question 5: Compounding is to future value what discounting is to present value. (This question is worth 1 point.) Answer 5: True or False: _____ Question 6: Discounting undoes compounding and compounding undoes discounting. (This question is worth 1 point.) Answer 6: True or False: _____
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