SHORT ANSWER QUESTIONS (Type in your answers.)
1. In your own words, briefly described a short-coming of financial ratios.
2. What motivates management to manage earnings? Given one example.
3. Name one significant characteristic of the Sarbanes-Oxley Act.
4. Give one example to explain how earnings can be managed.
5. Elaborate on one Porter’s Five Forces that can change the competitiveness of a firm’s product and service.
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