Final answer:
The focus is on analyzing Chevron's financial statements for corporate strategy and investment decisions. Diversification helps mitigate risks in a portfolio and shareholders choose managers via votes.
Step-by-step explanation:
The questions posed are related to the understanding and analysis of financial statements, the dynamics of financial markets, and strategic decision-making in a business context. Chevron would be the focus company for analyzing financial statements, which can typically be found in the annual report or the interactive analyst center on the company’s website. Understanding financial statements is key to making informed decisions about investment and corporate strategy.
Regarding purchasing stocks, one can do this via a stock exchange, which is a platform where stocks and other securities are bought and sold. Diversifying your portfolio is considered a prudent strategy because it spreads risk across different investments, reducing the potential impact of a single security’s poor performance.
Shareholders typically choose company managers through a vote, often conducted at an annual general meeting (AGM). Banks are referred to as financial intermediaries because they facilitate transactions between savers and borrowers, channeling funds from those who want to save money to those who want to borrow it.
Critical thinking would lead one to consider the benefits and drawbacks of both borrowing and issuing stock to raise capital for a major expansion. Borrowing may be preferred to avoid diluting ownership through stock issuance, while issuing stock could be seen as a way to raise capital without incurring debt.