FINA 3332 Exam 1 (2026) Exam Questions & Answers |
Latest Already Graded A+ UPDATE 2025|2026
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Students also studied
AP Comparative Government: UK IGCSE History TOV PMK-EE E5 Leadership & Character PMK-E
45 terms 19 terms 58 terms 22 terms
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Practice questions for this set
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net income ÷ # of shares
Choose an answer
1 earnings per share 2 market capitalization per share
3 revenue per share 4 dividend yield
Don't know?
Terms in this set (58)
finance - study of methods of acquiring funds and of how money is managed
- originally grew from accounting
- incorporates accounting, math, statistics, economics
areas of finance - financial management (corporate)
- investments (personal)
- financial markets and institutions (public)
, financial management (corporate) business finance, managerial finance, corporate finance
financial markets and institutions (public) money and banking
risk vs. expected return E(r) and risk positively related
four types of firms (1) sole proprietorships
(2) partnerships
(3) limited liability companies (LLC)
(4) corporations
sole proprietorships - straightforward
- many new businesses use this organizational form
- principal limitation: no separation between firm and owner (firm can only have 1
owner)
- owner has unlimited personal liability for any of the firm's debt
- life is limited to life of owner
- difficult to transfer ownership
partnerships - more than one owner
- all are liable for the firm's debt (a lender can require any partner to repay all the
firm's outstanding debts)
- ends on death/withdrawal of any single partner
- can avoid liquidation if the partnership agreement provides for alternatives such
as a buyout of a deceased/withdrawn partner
limited partnerships partnership with two kinds of owners:
- general partners
- limited partners
general partners - have same rights and privileges as partners in any general partnership
- are personally liable for firm's debt obligations
limited partners - have limited liability and their ownership interest is transferable
- have no management authority
limited liability companies (LLC) - no general partner
- all owners have limited liability, but they can also run the business
corporations - legally defined, artificial being, separate from its owners
- has many of the legal powers that people have (can enter into contracts, acquire
assets, incur obligations, has protection under U.S. Constitution against seizure of
its property)
- solely responsible for its own obligations
- owners are not liable for any obligations it enters into
- not liable for any personal obligations of its owner
Latest Already Graded A+ UPDATE 2025|2026
Save
Students also studied
AP Comparative Government: UK IGCSE History TOV PMK-EE E5 Leadership & Character PMK-E
45 terms 19 terms 58 terms 22 terms
cmitcheld Preview anavururahy Preview Hayley_Cruz2 Preview aus
Practice questions for this set
Learn 1 /7 Study with Learn
net income ÷ # of shares
Choose an answer
1 earnings per share 2 market capitalization per share
3 revenue per share 4 dividend yield
Don't know?
Terms in this set (58)
finance - study of methods of acquiring funds and of how money is managed
- originally grew from accounting
- incorporates accounting, math, statistics, economics
areas of finance - financial management (corporate)
- investments (personal)
- financial markets and institutions (public)
, financial management (corporate) business finance, managerial finance, corporate finance
financial markets and institutions (public) money and banking
risk vs. expected return E(r) and risk positively related
four types of firms (1) sole proprietorships
(2) partnerships
(3) limited liability companies (LLC)
(4) corporations
sole proprietorships - straightforward
- many new businesses use this organizational form
- principal limitation: no separation between firm and owner (firm can only have 1
owner)
- owner has unlimited personal liability for any of the firm's debt
- life is limited to life of owner
- difficult to transfer ownership
partnerships - more than one owner
- all are liable for the firm's debt (a lender can require any partner to repay all the
firm's outstanding debts)
- ends on death/withdrawal of any single partner
- can avoid liquidation if the partnership agreement provides for alternatives such
as a buyout of a deceased/withdrawn partner
limited partnerships partnership with two kinds of owners:
- general partners
- limited partners
general partners - have same rights and privileges as partners in any general partnership
- are personally liable for firm's debt obligations
limited partners - have limited liability and their ownership interest is transferable
- have no management authority
limited liability companies (LLC) - no general partner
- all owners have limited liability, but they can also run the business
corporations - legally defined, artificial being, separate from its owners
- has many of the legal powers that people have (can enter into contracts, acquire
assets, incur obligations, has protection under U.S. Constitution against seizure of
its property)
- solely responsible for its own obligations
- owners are not liable for any obligations it enters into
- not liable for any personal obligations of its owner
