entrepreneurship assignment 1

For this assignment, please answer these questions:

1. Why is it important for entrepreneurs to develop financial plans for their companies?

2. How should a small business manager use the ratios discussed in this chapter?

3. Outline the key points of the 12 ratios discussed in this chapter. What signals does each give a business owner

a. current ratio

b.quick ratio

c.debt ratio

d. debt to net worth ratio

e. times interest earned

f.average inventory turnover

g.average collection period

h.average payable period

i.net sales to total assets

j.net profit on sales

k.net profit to assets

l.net profit to equity

Paper should be 1-2 pages in length. Cite all necessary sources and include all references. Your document should be completed using APA format and standards.

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