LSUS MHA 706 FINAL LORD KEY CONCEPTS
AND PRACTICE QUESTIONS
◉ Accounting.
Answer: concerns the measurement, in financial (dollar) terms, of
events that reflect the resources, operations, and financing of an
organization
◉ Financial managment.
Answer: provides the theory, concepts, and tools necessary to help
managers make better financial decisions
◉ Business characteristics.
Answer: -obtains financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
◉ Pure Charity.
Answer: refers to an undertaking for a charitable purpose only. The
relief of poverty, advancement of education, advancement of religion,
promotion of health, the obtaining of good government, and the
, accomplishment of that which is beneficial to the community in any
other respect are pure charities.
◉ Primary role of finance.
Answer: is to plan for, acquire, and utilize resources to maximize the
efficiency (and hence value) of the enterprise.
◉ The Four C's.
Answer: cost minimization
cash sufficiency
capital access
control of financial resources
◉ 3 categories of business organizations.
Answer: proprietorship, partnership, and corporation (there are
also hybrid forms)
◉ Advantages of Proprietorships and Partnerships.
Answer: ease of formation, subject to few regulations, and no
corporate income taxes.
◉ Disadvantages to proprietorships and partnerships.
AND PRACTICE QUESTIONS
◉ Accounting.
Answer: concerns the measurement, in financial (dollar) terms, of
events that reflect the resources, operations, and financing of an
organization
◉ Financial managment.
Answer: provides the theory, concepts, and tools necessary to help
managers make better financial decisions
◉ Business characteristics.
Answer: -obtains financing from the marketplace
-uses the funds to buy assets
-operates the assets to provide goods or services
-sells the goods or services to create revenue
◉ Pure Charity.
Answer: refers to an undertaking for a charitable purpose only. The
relief of poverty, advancement of education, advancement of religion,
promotion of health, the obtaining of good government, and the
, accomplishment of that which is beneficial to the community in any
other respect are pure charities.
◉ Primary role of finance.
Answer: is to plan for, acquire, and utilize resources to maximize the
efficiency (and hence value) of the enterprise.
◉ The Four C's.
Answer: cost minimization
cash sufficiency
capital access
control of financial resources
◉ 3 categories of business organizations.
Answer: proprietorship, partnership, and corporation (there are
also hybrid forms)
◉ Advantages of Proprietorships and Partnerships.
Answer: ease of formation, subject to few regulations, and no
corporate income taxes.
◉ Disadvantages to proprietorships and partnerships.
