FIN 300 - Midterm #1 Question and
answers 100% correct
Capital Budgeting - correct answer ✔the process of planning and managing
a firm's investment in long-term assets
Capital Structure - correct answer ✔the mix of debt and equity maintained by
a firm
Working Capital Management - correct answer ✔planning and managing the
firm's current assets and liabilities
Sole proprietorship - correct answer ✔a business owned by a single
individual
Partnership - correct answer ✔a business formed by two or more co-workers
Corporation - correct answer ✔business created as a distinct legal entity
owned by one ore more individuals or entities
Agency Problem - correct answer ✔the possibility of conflicts of interest
between the shareholders and management of a firm
Corporate governance - correct answer ✔rules for corporate organization
and conduct
Stakeholder - correct answer ✔anyone who potentially has a claim on a firm
answers 100% correct
Capital Budgeting - correct answer ✔the process of planning and managing
a firm's investment in long-term assets
Capital Structure - correct answer ✔the mix of debt and equity maintained by
a firm
Working Capital Management - correct answer ✔planning and managing the
firm's current assets and liabilities
Sole proprietorship - correct answer ✔a business owned by a single
individual
Partnership - correct answer ✔a business formed by two or more co-workers
Corporation - correct answer ✔business created as a distinct legal entity
owned by one ore more individuals or entities
Agency Problem - correct answer ✔the possibility of conflicts of interest
between the shareholders and management of a firm
Corporate governance - correct answer ✔rules for corporate organization
and conduct
Stakeholder - correct answer ✔anyone who potentially has a claim on a firm
