The selling price of recycled cardboard can fluctuate dramatically, depending on the market conditions. By creating models that
used different assumptions for the selling price of recycled cardboard but keeping all other inputs in the model the same, the CFO demonstrated the effect of fluctuations in the price of recycled cardboard. Based on the information given, determine which of the statements is correct. The company’s CFO was conducting a sensitivity analysis on the project’s financial model. The company’s CFO performed a scenario analysis on the project’s financial model.
The correct answer is B) The company’s CFO performed a scenario analysis on the project’s financial model.
Based on the information given, the correct statement is "The company’s CFO performed a scenario analysis on the project’s financial model.
The Chief Finacial Officer (CFO) of the company is required to perform many scenario analysis of the market conditions in different circumstances and moments in time, so he can project the possible consequences the product is going to face in the market under different economic conditions. That is why the CFO creates models with different assumptions for the selling price of recycled cardboard but keeping all other inputs in the model the same. This way he demonstrates the effect of fluctuations in the price of recycled cardboard.
-givеs thе pеrspеctivе of PROFITABILITY on thе
pеrformancе/hеalth of a businеss<span> <span>-rеports on thе making and sеlling activitiеs of a businеss
ovеr timе
-all transactions that changе thе valuе of sharеholdеrs' еquity
(gеnеratе incomе/loss) arе rеcordеd on IS
-doеs NOT talk about whеn thе co rеcеivеs cash or how much
cash is on hand
VS balancе shееt (rеports on assеts, liabilitiеs, and еquity)
and cash flow statеmеnts (rеports on cash movеmеnt)</span></span>
Gaston has formed a general partnership with the two other business owners.
A general partnership is a business set up where two or more individuals own a business, take part in it's decision taking process and share profits equally.