The balance sheet provides a snapshot of a firm’s financial position at a particular date. Leaders are often navigating changes that impact the right side of the balance sheet. We learned that a firm’s Assets (left side of the balance sheet) are equal to their Liabilities plus their Equity (right side of the balance sheet). Capital represents the funds used to finance a firm’s assets and operations. Capital constitutes all items on the right-hand side of balance sheet, i.e., liabilities and common equity.
In this paper you will research and discuss common issues leaders should understand regarding liabilities and equity.
Tip: Searching for keywords in recent news stories from quality sources (CNBC, the WSJ, Yahoo finance, Regional Business News, Thompson Reuters Westlaw, scholarly articles, your textbook, etc) will provide a good head start for your paper.