FIN 300 Midterm 1 exam with correct answers.

FIN 300 Midterm 1 exam with correct answers
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Capital |Budgeting |- |CORRECT |ANSWER-the |process |of |planning |and |managing |a |firm's |investment |in |
long-term |assests



Capital |Structure |- |CORRECT |ANSWER-the |mix |of |debt |and |equity |maintained |by |a |firm



Working |Capital |Management |- |CORRECT |ANSWER-planning |and |managing |the |firm's |current |assets |
and |liabilities



Sole |proprietorship |- |CORRECT |ANSWER-a |business |owned |by |a |single |individual



Partnership |- |CORRECT |ANSWER-a |business |formed |by |two |or |more |co-workers



Corporation |- |CORRECT |ANSWER-business |created |as |a |distinct |legal |entity |owned |by |one |ore |more |
individuals |or |entities



Agency |Problem |- |CORRECT |ANSWER-the |possibility |of |conflicts |of |interest |between |the |shareholders |
and |management |of |a |firm



Corporate |governance |- |CORRECT |ANSWER-rules |for |corporate |organization |and |conduct



Stakeholder |- |CORRECT |ANSWER-anyone |who |potentially |has |a |claim |on |a |firm



Money |Markets |- |CORRECT |ANSWER-financial |markets |where |short-term |debt |securities |are |bought |
and |sold



Capital |Markets |- |CORRECT |ANSWER-financial |markets |where |long-term |debt |and |equity |securities |are
|bought |and |sold