Final answer:
The MD&A section of an annual report covers liquidity, capital resources, and results of operations, providing important financial information to investors and stakeholders.
Step-by-step explanation:
The Management's Discussion and Analysis (MD&A) section of an annual report covers three financial aspects of a firm's business: liquidity, capital resources, and results of operations. This section does not normally include the company president's letter, which is a separate item. Nor does the MD&A focus specifically on marketing and product line issues, though these topics could be discussed in the context of their impact on the financial aspects.
It is also not solely a technical analysis or a defense of past results by management, but it includes forward-looking statements and management's perspective on the financial health of the company. Information within the MD&A helps investors and other outside stakeholders such as bondholders and shareholders understand the company's financial decisions and prospects.