Concept Check - Week 1
1. What is a limited liability company (LLC)? How does it differ from a limited partnership?
2. What are the advantages and disadvantages of organising a business as a corporation?
3. What are the three main tasks of a financial manager?
4. What is a principal-agent problem that may exist in a corporation?
5. How may a corporate bankruptcy filing affect the ownership of a corporation
6. What are the important changes the have occurred in stock markets over the last decade?
Page 1 of 13
, 7. What is the limit order book?
8. Why are people who post limit orders termed "providers" of liquidity?
9. What is the different between a public and a private corporation?
10. Explain why the bid-ask spread is a transaction cost.
11. What does the phrase limited liability mean in a corporate content?
12. What are the four financial statements that all public companies must produce?
Page 2 of 13
1. What is a limited liability company (LLC)? How does it differ from a limited partnership?
2. What are the advantages and disadvantages of organising a business as a corporation?
3. What are the three main tasks of a financial manager?
4. What is a principal-agent problem that may exist in a corporation?
5. How may a corporate bankruptcy filing affect the ownership of a corporation
6. What are the important changes the have occurred in stock markets over the last decade?
Page 1 of 13
, 7. What is the limit order book?
8. Why are people who post limit orders termed "providers" of liquidity?
9. What is the different between a public and a private corporation?
10. Explain why the bid-ask spread is a transaction cost.
11. What does the phrase limited liability mean in a corporate content?
12. What are the four financial statements that all public companies must produce?
Page 2 of 13
