Cob 300 Finance Exam 1 - Ozcan Test Practice
2026 Guide
1. Three Areas of Finance
2. Business Finance The financial manage-
ment of a business enter-
prise
3. Investments The trading and portfolio
management of securities
4. Financial Institutions The management of
banks, credit unions, and
other financial service en-
terprises
5. Finance Within the Organization
6. Sarbanes-Oxley Act A law passed by Congress
in 2002 that requires the
CEO and the CFO to certi-
fy that theirfirm's financial
statements are accurate.
7. Forms of Business Organization
8. Sole Proprietorship Advantages Easiest to start
Least regulated Single
owner keeps all the profits
Taxed once as personal in-
come
, Cob 300 Finance Exam 1 - Ozcan Test Practice
2026 Guide
Disadvantages Limited to
life of owner
Equity capital limited to
owner's personal wealth
Unlimited personal liabili-
ty
Diflcult to sell ownership
interest
9. Partnership Advantages Two or more
owners More capital avail-
able
Relatively easy to start In-
come taxed once as per-
sonal income
Disadvantages Unlimit-
ed liability General part-
nership Limited partner-
ship Partnership dissolves
when one partner dies or
wishes to sell
Diflcult to transfer own-
ership
10. Corporations Owners = Shareholders-
æShareholders elect mem-
bers of the board of direc-
torsæSeparation of man-
agement and ownership-
æGovernance Structure of
large companies
, Cob 300 Finance Exam 1 - Ozcan Test Practice
2026 Guide
11. C-Corporation A C-corp is a legal struc-
ture for a corporation
in which the owners,
or shareholders, aretaxed
separately from the entity.
12. S-Corporation S-Corporation - A spe-
cial designation that al-
lows small businesses that
meet qualifications to be
taxed as ifthey were a pro-
prietorship or a partner-
ship
13. Limited Liability Corporation (LLC) a popular type of organi-
zation that is hybrid be-
tween a partnershipand a
corporation
14. B-Corp Gaining Popularityæ
Certified B Corporations
are businesses that meet
the highest standards of
verified social and en-
vironmental performance,
public transparency, and
legal accountability to bal-
ance profit and purpose.
(Patagonia, Toms)
15. Corporation (Advantages and Disadvantages) Advantages Limited liabil-
ity
, Cob 300 Finance Exam 1 - Ozcan Test Practice
2026 Guide
Unlimited life Separation
of ownership and man-
agement Transfer of own-
ership is easy Easier to
raise capital
Disadvantages Double
taxation (income taxed at
the corporate rate and
then dividends taxed at
the personal rate) Sepa-
ration of ownership and
management
16. S-Corporation (Advantages and Disadvantages) Advantages Do Not pay
Federal Income Taxes In-
come passed through to
shareholders Limited Lia-
bility Perpetual Lifeæ
Disadvantages Limited
Shareholders No more
than 100 Ability to raise
Capital limited
17. LLC (Advantages and Disadvantages) Advantages Do Not pay
Federal Income Taxes In-
come passed through to
shareholders Limited Lia-
bility No Limit to Share-
holders Perpetual Lifeæ
Disadvantages Separation
2026 Guide
1. Three Areas of Finance
2. Business Finance The financial manage-
ment of a business enter-
prise
3. Investments The trading and portfolio
management of securities
4. Financial Institutions The management of
banks, credit unions, and
other financial service en-
terprises
5. Finance Within the Organization
6. Sarbanes-Oxley Act A law passed by Congress
in 2002 that requires the
CEO and the CFO to certi-
fy that theirfirm's financial
statements are accurate.
7. Forms of Business Organization
8. Sole Proprietorship Advantages Easiest to start
Least regulated Single
owner keeps all the profits
Taxed once as personal in-
come
, Cob 300 Finance Exam 1 - Ozcan Test Practice
2026 Guide
Disadvantages Limited to
life of owner
Equity capital limited to
owner's personal wealth
Unlimited personal liabili-
ty
Diflcult to sell ownership
interest
9. Partnership Advantages Two or more
owners More capital avail-
able
Relatively easy to start In-
come taxed once as per-
sonal income
Disadvantages Unlimit-
ed liability General part-
nership Limited partner-
ship Partnership dissolves
when one partner dies or
wishes to sell
Diflcult to transfer own-
ership
10. Corporations Owners = Shareholders-
æShareholders elect mem-
bers of the board of direc-
torsæSeparation of man-
agement and ownership-
æGovernance Structure of
large companies
, Cob 300 Finance Exam 1 - Ozcan Test Practice
2026 Guide
11. C-Corporation A C-corp is a legal struc-
ture for a corporation
in which the owners,
or shareholders, aretaxed
separately from the entity.
12. S-Corporation S-Corporation - A spe-
cial designation that al-
lows small businesses that
meet qualifications to be
taxed as ifthey were a pro-
prietorship or a partner-
ship
13. Limited Liability Corporation (LLC) a popular type of organi-
zation that is hybrid be-
tween a partnershipand a
corporation
14. B-Corp Gaining Popularityæ
Certified B Corporations
are businesses that meet
the highest standards of
verified social and en-
vironmental performance,
public transparency, and
legal accountability to bal-
ance profit and purpose.
(Patagonia, Toms)
15. Corporation (Advantages and Disadvantages) Advantages Limited liabil-
ity
, Cob 300 Finance Exam 1 - Ozcan Test Practice
2026 Guide
Unlimited life Separation
of ownership and man-
agement Transfer of own-
ership is easy Easier to
raise capital
Disadvantages Double
taxation (income taxed at
the corporate rate and
then dividends taxed at
the personal rate) Sepa-
ration of ownership and
management
16. S-Corporation (Advantages and Disadvantages) Advantages Do Not pay
Federal Income Taxes In-
come passed through to
shareholders Limited Lia-
bility Perpetual Lifeæ
Disadvantages Limited
Shareholders No more
than 100 Ability to raise
Capital limited
17. LLC (Advantages and Disadvantages) Advantages Do Not pay
Federal Income Taxes In-
come passed through to
shareholders Limited Lia-
bility No Limit to Share-
holders Perpetual Lifeæ
Disadvantages Separation
