Answer: It helps focus employees on what needs to change
Explanation:
For change in anything to be implemented, there needs to be a recognition of what it is that is lacking that needs to be changed.
This is why diagnosis is very important. It shows the company what they need to change in order to be more sustainable and when the company is aware of these things, their employees will become more focused on those things with the view to change them.
Answer:
I. Capital expenditures
III. Taxes
IV. Working capital requirements
Explanation:
Free cash flow = EBIT*(1 - tax rate) + depreciation - changes in net working capital - capital expenditure
