FIN 300 CSU Schwebach || All Solved.
Primary goal of financial manager: correct answers maximize shareholder wealth
Main areas of Finance correct answers -Financial mgmt.
-Capital Markets
-Investments
Assets represent _________ of funds. correct answers uses
Liabilities and equity represent ________ of funds correct answers sources
Liabilities represent _______ claim.
Equity represents an _________ ownership claim. correct answers debt; ownership
Proprietorship correct answers -an unincorporated business owned by one person
-the owner has unlimited liability for business debts
-only taxed once
Partnership correct answers -an unincorporated business owned by two or more owners
-owner/partners have unlimited liability for business debts
-Each partner is equally liable for the business debts of the firm
Proprietorships and Partnerships advantages + Disadvantages correct answers adv: ease of
formation, subject to few gov. regulations, no corp. income taxes
Disadvantages: Unlimited personal liability - Limited life - Difficult to raise capital
, Corporation correct answers -A legal entity created by a state; separate and distinct from its
owners and managers
-Shareholder losses are limited to funds invested in the company
-Larger corporations are known as "C" corporations
Corporation advantages + disadvantages correct answers adv: Unlimited life - Easy transfer of
ownership - Limited personal liability - Ease of raising capital
disadv.:- Double taxation - Cost of set-up and report filing
"s" corp. correct answers -special type of corp. based on subchapter S of the IRS tax code
-created by congress as an aid to small businesses
-S corps. are exempt from corp. income tax
-taxed like a proprietorship or a partnership while retaining the benefit of limited liability
Limited Liability company (LLC) correct answers hybrid between a partnership and a
corporation
-has limited liability but are taxed like a partnership
Limited liability partnership (LLP) correct answers Similar to an LLC but used in professional
fields such as accounting, law, and architecture
-has limited liability but are taxed like a partnership
In equilibrium, a stocks price should ________ its "true" or intrinsic value correct answers equal
Business ethics correct answers a company's attitude and conduct toward its employees,
customers, community, and stockholders
manager must consider all stakeholder groups: correct answers customers, suppliers, employees,
bondholders, government, preferred stockholders, common stockholders
Primary goal of financial manager: correct answers maximize shareholder wealth
Main areas of Finance correct answers -Financial mgmt.
-Capital Markets
-Investments
Assets represent _________ of funds. correct answers uses
Liabilities and equity represent ________ of funds correct answers sources
Liabilities represent _______ claim.
Equity represents an _________ ownership claim. correct answers debt; ownership
Proprietorship correct answers -an unincorporated business owned by one person
-the owner has unlimited liability for business debts
-only taxed once
Partnership correct answers -an unincorporated business owned by two or more owners
-owner/partners have unlimited liability for business debts
-Each partner is equally liable for the business debts of the firm
Proprietorships and Partnerships advantages + Disadvantages correct answers adv: ease of
formation, subject to few gov. regulations, no corp. income taxes
Disadvantages: Unlimited personal liability - Limited life - Difficult to raise capital
, Corporation correct answers -A legal entity created by a state; separate and distinct from its
owners and managers
-Shareholder losses are limited to funds invested in the company
-Larger corporations are known as "C" corporations
Corporation advantages + disadvantages correct answers adv: Unlimited life - Easy transfer of
ownership - Limited personal liability - Ease of raising capital
disadv.:- Double taxation - Cost of set-up and report filing
"s" corp. correct answers -special type of corp. based on subchapter S of the IRS tax code
-created by congress as an aid to small businesses
-S corps. are exempt from corp. income tax
-taxed like a proprietorship or a partnership while retaining the benefit of limited liability
Limited Liability company (LLC) correct answers hybrid between a partnership and a
corporation
-has limited liability but are taxed like a partnership
Limited liability partnership (LLP) correct answers Similar to an LLC but used in professional
fields such as accounting, law, and architecture
-has limited liability but are taxed like a partnership
In equilibrium, a stocks price should ________ its "true" or intrinsic value correct answers equal
Business ethics correct answers a company's attitude and conduct toward its employees,
customers, community, and stockholders
manager must consider all stakeholder groups: correct answers customers, suppliers, employees,
bondholders, government, preferred stockholders, common stockholders
