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A100 IU Exam 2 Latest Update Exam | Questions and Verified Answers | 100% Correct | Grade A +

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A100 IU Exam 2 Latest Update Exam | Questions and Verified Answers | 100% Correct | Grade A +

Institution
Indiana University
Course
BUS-A 100

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A100 IU Exam 2 Latest Update Exam | Questions and Verified Answers
| 100% Correct | Grade A +




Business activities activities - ANSWER Operating, Investing, and
Financing


Sources of funds - ANSWER liabilities and stockholders equity


Uses of funds - ANSWER assets


Equity Investors - ANSWER Owners/shareholders
Care about earnings retained from profitable business
operations


Legal rights of stockholders - ANSWER Ownership, hope for
profit


Benefits of stockholders - ANSWER Increased value of shares,
possible dividends

, 2|Page


Risks of stockholders - ANSWER May not receive ROI, can lose
some or all investment, may not receive dividend


Debt Investors - ANSWER Creditors (banks, leasing, bond
holders)
reported as liability
principle and interest must be paid


Legal rights of debt investors - ANSWER Interest and principle
must be paid
able to demand payment , confiscate items, or "call the note"


Benefits of Debt investors - ANSWER Earn a return greater than
that of the borrowed funds, net benefits retained by the owners


Risks of debt investors - ANSWER Financial risks
may have to liquidate assets
could cause bankrupcy
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Indiana University
Course
BUS-A 100

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