FIN-350 CERTIFICATION PAPER 2026
FULL SOLUTION GRADED A+
● Limited Partnerships. Answer: Advantages
• The same as proprietorship's except liability is limited to partners
contribution.
Disadvantages
• Also the same as proprietorship but the partners do not participate in
day-to-day operations of company.
● Corporation. Answer: Advantages
• Unlimited life
• Easy transfer of ownership
• Limited liability
• Ease of raising capital
Disadvantages
• Double taxation
• Cost of set-up and report filing
● S-corporation. Answer: • Small business
• Taxed like a partnership
, • Limited to only 100 stockholders
● Limited liability company (LLP for professionals). Answer: Limited
liability and single taxation
● Financial goals for company. Answer: The primary financial goal is
current shareholder wealth maximization (in the long run), which
translates to maximizing stock prices
● Intrinsic Value. Answer: An estimate of a stock's "true" value based
on accurate risk and return data. The ___ value can be estimated but not
measured precisely. (investopedia)
● Market value. Answer: A stock's market value which may be based on
perceived and possibly incorrect information ( is the stock price)
(investopedia)
● Equilibrium. Answer: when a stock's price equals its true or intrinsic
value .
● Corporate raider. Answer: An individual who targets a corporation for
takeover because it is undervalued.
FULL SOLUTION GRADED A+
● Limited Partnerships. Answer: Advantages
• The same as proprietorship's except liability is limited to partners
contribution.
Disadvantages
• Also the same as proprietorship but the partners do not participate in
day-to-day operations of company.
● Corporation. Answer: Advantages
• Unlimited life
• Easy transfer of ownership
• Limited liability
• Ease of raising capital
Disadvantages
• Double taxation
• Cost of set-up and report filing
● S-corporation. Answer: • Small business
• Taxed like a partnership
, • Limited to only 100 stockholders
● Limited liability company (LLP for professionals). Answer: Limited
liability and single taxation
● Financial goals for company. Answer: The primary financial goal is
current shareholder wealth maximization (in the long run), which
translates to maximizing stock prices
● Intrinsic Value. Answer: An estimate of a stock's "true" value based
on accurate risk and return data. The ___ value can be estimated but not
measured precisely. (investopedia)
● Market value. Answer: A stock's market value which may be based on
perceived and possibly incorrect information ( is the stock price)
(investopedia)
● Equilibrium. Answer: when a stock's price equals its true or intrinsic
value .
● Corporate raider. Answer: An individual who targets a corporation for
takeover because it is undervalued.
