2024 | Due 10 October
2024
Finance - ANSWER ✓✓✓Finance: the process of transferring money from
savers to borrowers through financial markets/institutions.
Corporation Adv. and Disadvantage - ANSWER ✓✓✓Advantages:
1. Limited liability
2. Unlimited life
3. Easy to raise capital
Disadvantages:
1. Hard to form
2. More regulations
3. High tax
, 4. Agency problem
Difference Subject Areas in Finance - ANSWER ✓✓✓Investment (Savers)
Corporate Finance (Borrowers)
Financial Markets & Institutions (Intermediaries)
3 main forms of business organizations with bonus - ANSWER ✓✓✓There are three main forms of business
organizations:
1. Sole Proprietorship
2. Partnership
3. Corporations
Limited liability Companies (LLC) is hybrid between partnership and corporation.
Proprietorship and Partnership Adv and Dis - ANSWER ✓✓✓Advantages:
Easy to form
Few regulations
Lower tax
Disadvantages:
Unlimited liability
Limited life
Difficult to raise capital
Finance within a corporation - ANSWER ✓✓✓
What is management's primary goal? - ANSWER ✓✓✓Maximize the wealth of stakeholders in a socially
responsible way so that the wealth is maximized long term