FINA 4357 EXAM I ||ALREADY RATED
A+||PRACTICE EXAM WITH QUESTIONS
AND ANSWERS {VERIFIED}||BRAND NEW
VERSION 2026!!!!!!
finance - CORRECTANSWER - study of methods of acquiring funds and of how money is
managed
- originally grew from accounting
- incorporates accounting, math, statistics, economics
areas of finance - CORRECTANSWER - financial management (corporate)
- investments (personal)
- financial markets and institutions (public)
financial management (corporate) - CORRECTANSWER business finance, managerial finance,
corporate finance
financial markets and institutions (public) - CORRECTANSWER money and banking
risk vs. expected return - CORRECTANSWER E(r) and risk positively related
, four types of firms - CORRECTANSWER (1) sole proprietorships
(2) partnerships
(3) limited liability companies (LLC)
(4) corporations
sole proprietorships - CORRECTANSWER - straightforward
- many new businesses use this organizational form
- principal limitation: no separation between firm and owner (firm can only have 1 owner)
- owner has unlimited personal liability for any of the firm's debt
- life is limited to life of owner
- difficult to transfer ownership
partnerships - CORRECTANSWER - more than one owner
- all are liable for the firm's debt (a lender can require any partner to repay all the firm's
outstanding debts)
- ends on death/withdrawal of any single partner
- can avoid liquidation if the partnership agreement provides for alternatives such as a buyout
of a deceased/withdrawn partner
limited partnerships - CORRECTANSWER partnership with two kinds of owners:
- general partners
- limited partners
general partners - CORRECTANSWER - have same rights and privileges as partners in any general
partnership
- are personally liable for firm's debt obligations
A+||PRACTICE EXAM WITH QUESTIONS
AND ANSWERS {VERIFIED}||BRAND NEW
VERSION 2026!!!!!!
finance - CORRECTANSWER - study of methods of acquiring funds and of how money is
managed
- originally grew from accounting
- incorporates accounting, math, statistics, economics
areas of finance - CORRECTANSWER - financial management (corporate)
- investments (personal)
- financial markets and institutions (public)
financial management (corporate) - CORRECTANSWER business finance, managerial finance,
corporate finance
financial markets and institutions (public) - CORRECTANSWER money and banking
risk vs. expected return - CORRECTANSWER E(r) and risk positively related
, four types of firms - CORRECTANSWER (1) sole proprietorships
(2) partnerships
(3) limited liability companies (LLC)
(4) corporations
sole proprietorships - CORRECTANSWER - straightforward
- many new businesses use this organizational form
- principal limitation: no separation between firm and owner (firm can only have 1 owner)
- owner has unlimited personal liability for any of the firm's debt
- life is limited to life of owner
- difficult to transfer ownership
partnerships - CORRECTANSWER - more than one owner
- all are liable for the firm's debt (a lender can require any partner to repay all the firm's
outstanding debts)
- ends on death/withdrawal of any single partner
- can avoid liquidation if the partnership agreement provides for alternatives such as a buyout
of a deceased/withdrawn partner
limited partnerships - CORRECTANSWER partnership with two kinds of owners:
- general partners
- limited partners
general partners - CORRECTANSWER - have same rights and privileges as partners in any general
partnership
- are personally liable for firm's debt obligations
