Title: Explain basic financial statements.
Course: Marketing (12164) > Section: Planning for Business Operations

Explanation should include

- the content and purposes of a balance sheet (i.e., summarizes the assets and liabilities of a business, as well as the owner’s equity in the business)
- an income statement (i.e., summarizes a business’s profit and loss over a given period)
- reliable sources of financial data for corporations.

Process/Skill Questions:

- What is the difference between an asset and a liability?
- How can a company determine whether it has made a profit or incurred a loss?
- How does a company determine its net worth?
- What might happen if an entrepreneur did not include financial documents in a business plan?
- How are a business’s one-time start-up costs different from its continuing costs?
- How does the Small Business Administration (SBA) help businesses plan for their financial needs?
- Why are public companies and organizations required to publish their financial data?