Finance 3403- Whyte -Exam 1 UCF Exam
Questions With Correct Answers
Goal of the firm - CORRECT ANSWER✔✔-Maximizing firm value and stock price
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Sole proprietorship - CORRECT ANSWER✔✔-a business owned by a single
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individual where the owner is entitled to profits, but also losses, and no limit on
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liability
General partnership - CORRECT ANSWER✔✔-Two or more owners. Each owner is
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fully responsible for liabilities.
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Limited partnership - CORRECT ANSWER✔✔-1 or more partners
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Limited liability (up to amount of capital invested in the business)
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Corporation - CORRECT ANSWER✔✔-A business that functions separate and
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apart from its owners, all owners have limited liability.
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• Can't sue shareholders
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• Disadvantage- double taxed
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S-Corporation - CORRECT ANSWER✔✔-Provides limited liability but taxed like a
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partnership
, Limited liability company (LLC) - CORRECT ANSWER✔✔-Provides limited liability,
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but taxed like a partnership, but more flexible than an S-corporation
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Public offering - CORRECT ANSWER✔✔-All investors have the opportunity to
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acquire a portion of the financial claims being sold
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Private placement - CORRECT ANSWER✔✔-Not all investors have the opportunity
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to acquire a portion of the financial claims being sold.
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Primary Market - CORRECT ANSWER✔✔-A market in which securities are offered
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for the first time for sale to potential investors
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Secondary Market - CORRECT ANSWER✔✔-Investors buy and sell existing
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securities
•Trading
Money Market - CORRECT ANSWER✔✔-Market for short term = (less than 1 year)
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Debt instruments such as treasury bills, negotiable CDs, commercial paper.
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Capital Market - CORRECT ANSWER✔✔-For long-term financial instruments such
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as loans, stocks, bonds, mortgages
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Spot Market - CORRECT ANSWER✔✔-Market where something sells today, also
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called the cash market
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Questions With Correct Answers
Goal of the firm - CORRECT ANSWER✔✔-Maximizing firm value and stock price
| | | | | | | | | | |
Sole proprietorship - CORRECT ANSWER✔✔-a business owned by a single
| | | | | | | | | |
individual where the owner is entitled to profits, but also losses, and no limit on
| | | | | | | | | | | | | | |
liability
General partnership - CORRECT ANSWER✔✔-Two or more owners. Each owner is
| | | | | | | | | | |
fully responsible for liabilities.
| | |
Limited partnership - CORRECT ANSWER✔✔-1 or more partners
| | | | | | |
Limited liability (up to amount of capital invested in the business)
| | | | | | | | | |
Corporation - CORRECT ANSWER✔✔-A business that functions separate and
| | | | | | | | |
apart from its owners, all owners have limited liability.
| | | | | | | |
• Can't sue shareholders
| | |
• Disadvantage- double taxed
| | |
S-Corporation - CORRECT ANSWER✔✔-Provides limited liability but taxed like a
| | | | | | | | | |
partnership
, Limited liability company (LLC) - CORRECT ANSWER✔✔-Provides limited liability,
| | | | | | | | |
but taxed like a partnership, but more flexible than an S-corporation
| | | | | | | | | |
Public offering - CORRECT ANSWER✔✔-All investors have the opportunity to
| | | | | | | | | |
acquire a portion of the financial claims being sold
| | | | | | | |
Private placement - CORRECT ANSWER✔✔-Not all investors have the opportunity
| | | | | | | | |
to acquire a portion of the financial claims being sold.
| | | | | | | | | |
Primary Market - CORRECT ANSWER✔✔-A market in which securities are offered
| | | | | | | | | | |
for the first time for sale to potential investors
| | | | | | | |
Secondary Market - CORRECT ANSWER✔✔-Investors buy and sell existing
| | | | | | | | |
securities
•Trading
Money Market - CORRECT ANSWER✔✔-Market for short term = (less than 1 year)
| | | | | | | | | | | |
|
Debt instruments such as treasury bills, negotiable CDs, commercial paper.
| | | | | | | | |
Capital Market - CORRECT ANSWER✔✔-For long-term financial instruments such
| | | | | | | | |
as loans, stocks, bonds, mortgages
| | | |
Spot Market - CORRECT ANSWER✔✔-Market where something sells today, also
| | | | | | | | | |
called the cash market
| | |
