1. Internal control procedures are important in every business.At what stage in the development of a business do they becomeespecially critical? Is there one area of the business (cash,receivables, inventory) where the procedures are the most critical,and why do you think that area is the most important?
2. You are investing in a company. Would you rather invest incommon stock, convertible preferred stock, non-cumulative preferredstock, or cumulative preferred stock? Please explain yourchoice.
3. A company can finance their company in many ways - short-termdebt, long-term borrowing, selling bonds, issuing stock. What doyou think is a good mix for the company to have, and why? Whatmight influence the mix for a company?
