What do you understand by the term bill of exchange? Describe carefully the requisites for the bill of exchange to be valid.
[You are anticipated to provide exs of valid and invalid bills of exchange in your answer]
You have a close friend, Peter, who is a renowned marine biologist, and he wants to know how to interprete financial statements which are quite unfamiliar to him. Describe to him how to interprete the essential parts of a financial statement namely such as:-
(a) The balance sheet;
(b) The income statement;
(c) The cash flow statement;
(d) The statement of shareholders’ equity.
What do you understand by the Risk-Return relationship in field of finance and what is the significance of this relationship?
What do you understand by the phrase ‘Dividend Policy’? When are Dividends said to be immaterial?