CFIN CERTIFICATION EVALUATION EXAMS
SET FULL QUESTIONS AND COMPLETE
SOLUTION
●● Sole Proprietorship
Answer: Business owned by one person with unlimited liability
●● Partnership
Answer: Business owned by two or more people
●● Corporation
Answer: Separate legal entity from owners
●● LLC (Limited Liability Company)
Answer: Flexible structure with limited liability protection
●● LLP (Limited Liability Partnership)
Answer: Partnership with liability protection
●● Limited Liability
Answer: Owners only lose invested money
, ●● Unlimited Liability
Answer: Owners personally responsible for debts
●● Double Taxation
Answer: Corporate earnings taxed twice
●● Agency Problem
Answer: Managers acting in self-interest over shareholders
●● Corporate Governance
Answer: Systems controlling management behavior
●● Board of Directors
Answer: Group overseeing management for shareholders
●● Financial Markets
Answer: Systems moving money from savers to borrowers
●● Surplus Units
Answer: Groups with extra money to invest
SET FULL QUESTIONS AND COMPLETE
SOLUTION
●● Sole Proprietorship
Answer: Business owned by one person with unlimited liability
●● Partnership
Answer: Business owned by two or more people
●● Corporation
Answer: Separate legal entity from owners
●● LLC (Limited Liability Company)
Answer: Flexible structure with limited liability protection
●● LLP (Limited Liability Partnership)
Answer: Partnership with liability protection
●● Limited Liability
Answer: Owners only lose invested money
, ●● Unlimited Liability
Answer: Owners personally responsible for debts
●● Double Taxation
Answer: Corporate earnings taxed twice
●● Agency Problem
Answer: Managers acting in self-interest over shareholders
●● Corporate Governance
Answer: Systems controlling management behavior
●● Board of Directors
Answer: Group overseeing management for shareholders
●● Financial Markets
Answer: Systems moving money from savers to borrowers
●● Surplus Units
Answer: Groups with extra money to invest
