FINC 3610 Test 1 – Auburn University | Practice Questions, Study Guide &
Finance Exam Review 2026
Three main areas of concern in Corporate Finance - ANS ✔✔Capital Budgeting, Capital
Structure, Working Capital Management
Capital Budgeting is concerned with... - ANS ✔✔What long-term investments a firm should take
on
Capital Structure is concerned with... - ANS ✔✔Where we will get the long-term financing to
pay for the investment
Working Capital Management is concerned with... - ANS ✔✔How we will manage the everyday
financial activities of the firm
What are the 3 main forms of business organization in the US? - ANS ✔✔Sole proprietorship
Partnership
Corporation
Sole Proprietorship - ANS ✔✔a business owned by one person
Partnership - ANS ✔✔business similar to a proprietorship but owned by two or more people
General Partnership - ANS ✔✔all partners share in gains or losses, and all have unlimited
liability for all partnership debts, not just some particular share.
Finance Exam Review 2026
Three main areas of concern in Corporate Finance - ANS ✔✔Capital Budgeting, Capital
Structure, Working Capital Management
Capital Budgeting is concerned with... - ANS ✔✔What long-term investments a firm should take
on
Capital Structure is concerned with... - ANS ✔✔Where we will get the long-term financing to
pay for the investment
Working Capital Management is concerned with... - ANS ✔✔How we will manage the everyday
financial activities of the firm
What are the 3 main forms of business organization in the US? - ANS ✔✔Sole proprietorship
Partnership
Corporation
Sole Proprietorship - ANS ✔✔a business owned by one person
Partnership - ANS ✔✔business similar to a proprietorship but owned by two or more people
General Partnership - ANS ✔✔all partners share in gains or losses, and all have unlimited
liability for all partnership debts, not just some particular share.
