1. You're the sole owner of Duarte Spring Company; you paid $200K for the business when you acquired the firm five years ago. Duarte is a manufacturer of high-end springs used by major aerospace and aircraft manufacturing companies. Six months ago, you completed your largest project to date--a $500,000 order delivered to Boeing Corporation. Regrettably, you just received notice from Boeing's lawyers reporting that they incurred a $50 million loss because your part failed and forced Boeing to miss key delivery dates of its new jumbo jet for customers. What is the dollar amount yourpersonal loss exposure if Duarte Spring Company is a) a sole proprietorship, and b) if it is a C-Corporation, and explain why?
2. Differentiate among the three components of a sound business model; describe each component in detail, and then explain how they work together to provide a sound business model.
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3. Which statements best define the concept of a cash budget?
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The statement of cash flows
A venture's projected cash receipts and disbursements over a forecast period
The income statement using accrual accounting according to GAAP guidelines
Management's one year forecast identifying sources and uses of cash
Statement of Retained Earnings