1) While I was reading this chapter, I was surprised to learn that a cash budget is the best way for an entrepreneur to start a business. I guess I should have known this because having to pay everything with other forms of payment is worse. If the entrepreneur would have to pay the interest as well as the amount he may have borrowed from the bank or credit card company, it would be more stressful.
2) One part that was confusing to me during this reading was the sales forecasting section that talked about a linear equation that can forecast sales. I am not the best with math so I immediately had to look over this part, but once I saw the graph I understood it more.
3) The two questions I would ask the author are if he would ever start a company without a cash budget even though it is risky, but aren't entrepreneurs are supposed to constantly take risks? My second question is if the horizontal analysis is a broader method and therefore more useful than the vertical analysis method?
4) What I believe the author was wrong about was how he said that taxes were a variable expense because they depend on sales. While this is true, I always believed one had to pay fixed taxes on the property and the taxes to run a business.
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