IET 414: First Midterm || A Verified A+ Pass.
corporate government correct answers Businesses way of regulated a company rules/laws
Sole Proprietorship correct answers Represents single-person owners
Partnership correct answers Similar to sole proprietorship except with two or more owner
Limited liability partnership correct answers One or more partners designated general partners
and have unlimited liability for debts of firm
Corporation correct answers a company or group of people authorized to act as a single entity
(legally a person) and recognized as such in law.
S corporation correct answers Income taxed as direct income to stockholders, thus taxed only
once as normal income
Agency Theory correct answers examines relationship between owners and managers of firm
Define Gross Profit Margin correct answers finding the amount of money left to operate the
business after applying COGS
What is ratio analysis useful for? correct answers gives comparison of a company to its industry.
evaluate operating performance of firm
What kinds of Ratio would short term creditors be in? correct answers -Short-term: Liquidity
-Existing and potential lenders: Debt
-Key managers of company, potential supply chain partners: Activity ratios
-Existing and potential investors: Profitability
Formula: Return on Equity correct answers Net Income/Stockholder Equity
Average Collection Period correct answers the average time it took customers to pay their bills.
Calculate Average Collection Period correct answers accounts receivables/(sales/360)*
*(sales/360)=average daily credit sales
What are the 4 categories for ratios correct answers Profitability
Liquidity
Asset Utilization
Debt Utilization
Profitability Ratios correct answers Profit margin
Return on assets (investment)
corporate government correct answers Businesses way of regulated a company rules/laws
Sole Proprietorship correct answers Represents single-person owners
Partnership correct answers Similar to sole proprietorship except with two or more owner
Limited liability partnership correct answers One or more partners designated general partners
and have unlimited liability for debts of firm
Corporation correct answers a company or group of people authorized to act as a single entity
(legally a person) and recognized as such in law.
S corporation correct answers Income taxed as direct income to stockholders, thus taxed only
once as normal income
Agency Theory correct answers examines relationship between owners and managers of firm
Define Gross Profit Margin correct answers finding the amount of money left to operate the
business after applying COGS
What is ratio analysis useful for? correct answers gives comparison of a company to its industry.
evaluate operating performance of firm
What kinds of Ratio would short term creditors be in? correct answers -Short-term: Liquidity
-Existing and potential lenders: Debt
-Key managers of company, potential supply chain partners: Activity ratios
-Existing and potential investors: Profitability
Formula: Return on Equity correct answers Net Income/Stockholder Equity
Average Collection Period correct answers the average time it took customers to pay their bills.
Calculate Average Collection Period correct answers accounts receivables/(sales/360)*
*(sales/360)=average daily credit sales
What are the 4 categories for ratios correct answers Profitability
Liquidity
Asset Utilization
Debt Utilization
Profitability Ratios correct answers Profit margin
Return on assets (investment)
