CFIN Chapter 1 & 2 || with Accurate Answers 100%.

What is finance? correct answers the study of money, both cash inflows and outflows Finance decisions deal with how money is correct answers raised and used by businesses, governments, and individuals. To make sounds financial decisions you must understand 3 general concepts: 1st correct answers more value is preferred to less To make sounds financial decisions you must understand 3 general concepts: 2nd correct answers the sooner cash is received, the more valuable it is To make sounds financial decisions you must understand 3 general concepts: 3rd correct answers less-risky assets are more valuable than risker assets Three basic forms of business: correct answers propreitorship, partnership, and corporation Advantages to forming businesses as propreitorships and partnerships: (Total of 3) 1st: correct answers 1. they are easy to form Advantages to forming businesses as propreitorships and partnerships: (Total of 3) 2nd correct answers 2. they are subject to few government regulations Advantages to forming businesses as propreitorships and partnerships: (Total of 3) 3rd correct answers 3. they are taxed like individuals Disadvantages to forming businesses as propreitorships and partnerships: (Total of 4) 1st correct answers 1. owners have unlimited personal liability for the firms debts Disadvantages to forming businesses as propreitorships and partnerships: (Total of 4) 2nd correct answers 2. the business has limited life Disadvantages to forming businesses as propreitorships and partnerships: (Total of 4) 3rd correct answers 3. transferring ownership is similar to selling a house Disadvantages to forming businesses as propreitorships and partnerships: (Total of 4) 4th correct answers 4. raising large amounts of funds is difficult Advantages to forming businesses as a corporation: (Total of 4) 1st correct answers owners have limited liability for the firms debt Advantages to forming businesses as a corporation: (Total of 4) 2nd correct answers ownership is easily transferred through stock transactions