MBA 702 - Module 1 | COMPLETE QUESTIONS WITH 100% RATED
CORRECT ANSWERS | 2025 LATEST UPDATED | GET A+
Capital budgeting - (answers)Process of planning and managing a firm's investments in fixed
assets.
- What projects should the firm seek out and accept?
- What new capital assets (such as land, equipment, etc.) are required for the project?What long-
term investments should the firm take on
-The key concerns are the size, timing and riskiness offuture cash flows.
Capital structure - (answers)A mix of debt (borrowing) and equity (ownership interest) is used by
a firm.
- What are the least expensive sources of funds?
- Is there an optimal mix of debt and equity?
- When and where should the firm raise funds?
你是想要一篇“眼睛容易阅读
的”中文文章
Working capital - (answers)Managing short-term assets and liabilities.- How much inventory
should the firm carry?
- What credit policy is best?
- Where will we get our short-term loans?
- Monitoring accounts payable and accounts receivable
Chief Financial Officer (CFO) - (answers)The top financial manager within a firm
Controller - (answers)Handles cost and financial accounting, taxes, and information systems.
treasurer - (answers)handles cash management,financial planning, and capital expenditures.
, Sole Proprietorship - (answers)A business owned by one person.
Benefits•
Ease of startup no special forms•
Lower regulations•
Single owner keeps allthe profits•
Taxed once as personalincome
Drawbacks•
Limited life - when owner dies, the firm dies or is sold• Limited equity capital - this is limited to
the funds available to the individual•
Unlimited liability - in firmmbankruptcy, the owner is liable forall debts of the firm.
Losing one'shouse and savings is a possibility•
Low liquidity - it is harder to get funding or bank loans for a sole proprietorship
你是想要一篇“眼睛容易阅读
Partnership - (answers)A business with multiple owners but not incorporated
的”中文文章
Benefits
• More equity capital than is available to a sole proprietorship
• Relatively easy to start(although written agreements are essential)
• Income taxed once at personal tax rate.
Drawbacks
• Unlimited liability for general partners
• Dissolution of partnership when one partner dies or wishes to sell
• Low liquidity
Corporation - (answers)A distinct legal entity composed of one or more owners.
CORRECT ANSWERS | 2025 LATEST UPDATED | GET A+
Capital budgeting - (answers)Process of planning and managing a firm's investments in fixed
assets.
- What projects should the firm seek out and accept?
- What new capital assets (such as land, equipment, etc.) are required for the project?What long-
term investments should the firm take on
-The key concerns are the size, timing and riskiness offuture cash flows.
Capital structure - (answers)A mix of debt (borrowing) and equity (ownership interest) is used by
a firm.
- What are the least expensive sources of funds?
- Is there an optimal mix of debt and equity?
- When and where should the firm raise funds?
你是想要一篇“眼睛容易阅读
的”中文文章
Working capital - (answers)Managing short-term assets and liabilities.- How much inventory
should the firm carry?
- What credit policy is best?
- Where will we get our short-term loans?
- Monitoring accounts payable and accounts receivable
Chief Financial Officer (CFO) - (answers)The top financial manager within a firm
Controller - (answers)Handles cost and financial accounting, taxes, and information systems.
treasurer - (answers)handles cash management,financial planning, and capital expenditures.
, Sole Proprietorship - (answers)A business owned by one person.
Benefits•
Ease of startup no special forms•
Lower regulations•
Single owner keeps allthe profits•
Taxed once as personalincome
Drawbacks•
Limited life - when owner dies, the firm dies or is sold• Limited equity capital - this is limited to
the funds available to the individual•
Unlimited liability - in firmmbankruptcy, the owner is liable forall debts of the firm.
Losing one'shouse and savings is a possibility•
Low liquidity - it is harder to get funding or bank loans for a sole proprietorship
你是想要一篇“眼睛容易阅读
Partnership - (answers)A business with multiple owners but not incorporated
的”中文文章
Benefits
• More equity capital than is available to a sole proprietorship
• Relatively easy to start(although written agreements are essential)
• Income taxed once at personal tax rate.
Drawbacks
• Unlimited liability for general partners
• Dissolution of partnership when one partner dies or wishes to sell
• Low liquidity
Corporation - (answers)A distinct legal entity composed of one or more owners.
