Upon completion of the Required Readings, write a thorough, well-planned narrative answer to the following discussion question. Rely on your Required Readings and the Lecture and Research Update for specific information to answer the discussion question, but turn to your original thoughts when asked to apply, evaluate, analyze, or synthesize the information. Your Discussion Question response should be both grammatically and mechanically correct, and formatted in the same fashion as the question itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your responses and document in a bibliography using APA style.
Discussion Question
Respond to the following:
1. Explain how the cash flow cycle works.
2. Describe how financial management is related to accounting.
3. How do sole proprietorships, general partnerships, limited liability companies, S corporations, and C corporations differ?
4. Suppose three optometrists wished to form a business that was expected to last until the oldest one was about to retire. The three had known each other since college and were close friends who trusted one another. What type of firm might be appropriate? Why?
5. Describe the four stages of the business cycle.
6. Describe the two hypotheses that explain the shape of the yield curve.
7. Describe the three shapes of the yield curve that tend to be associated with different business cycle stages.
8. Compare the typical profitability of a stage 2 firm versus a stage 3 firm.
9. Develop a list of factors that would result in a firm having high supply risk and high demand risk.
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