FIN 300 EXAM 1 SADUSKY || ERROR-FREE ANSWERS 100%.
C Corporation correct answers is a business term that is used to distinguish this type of entity
from others, as its profits are taxed separately from its owners under subchapter C of the IRS
code.
Double taxed.
S corporation correct answers are ordinary business corporations that elect to pass corporate
income, losses, deductions and credits through to their shareholders for federal tax purposes. The
term "S corporation" means a small business corporation which has made that election under the
IRS code.
B Corporation correct answers are businesses that meet the highest standard of verified social
and environmental performance, public transparency and legal accountability to balance profit
and purpose. They form a community of leaders and drive a global movement of people using
business as a force for good.
productive assets correct answers the long-term tangible and intangible assets a firm uses to
generate cash flows
The 3 fundamental decisions in financial management correct answers Capital budgeting
decisions: identify which long-term assets to acquire to maximize net benefits for the firm.
Financing decisions: determine how to pay for short-term and long-term assets by finding the
best combination of short-term debt, long-term debt, and equity
Working capital management decisions: decide how to manage short-term resources and
obligations by adjusting current assets and current liabilities to promote growth in cash flow
Sole Proprietorship correct answers Owned by a single person who is financially responsible for
the actions and obligations of the business.
, Advantages:
Easiest to create and control
Easiest to dissolve
Right to all profits
Disadvantages:
Owner's personal assets at risk due to unlimited liability for firm obligations
Equity only from owner or business profit
Business income taxes as personal income
Difficult to transfer ownership
Partnership correct answers A business owned by more than one person; one or more of them is
financially responsible for the actions and obligations of the business
Advantages:
Limited protection of owner's personal assets
Owner's limited liability for firm obligations
More sources of equity
More sources of expertise
Disadvantages:
Shared control
Shared profit harder to dissolve
The goal of the firm correct answers to maximize shareholder wealth and generate cash flows
C Corporation correct answers is a business term that is used to distinguish this type of entity
from others, as its profits are taxed separately from its owners under subchapter C of the IRS
code.
Double taxed.
S corporation correct answers are ordinary business corporations that elect to pass corporate
income, losses, deductions and credits through to their shareholders for federal tax purposes. The
term "S corporation" means a small business corporation which has made that election under the
IRS code.
B Corporation correct answers are businesses that meet the highest standard of verified social
and environmental performance, public transparency and legal accountability to balance profit
and purpose. They form a community of leaders and drive a global movement of people using
business as a force for good.
productive assets correct answers the long-term tangible and intangible assets a firm uses to
generate cash flows
The 3 fundamental decisions in financial management correct answers Capital budgeting
decisions: identify which long-term assets to acquire to maximize net benefits for the firm.
Financing decisions: determine how to pay for short-term and long-term assets by finding the
best combination of short-term debt, long-term debt, and equity
Working capital management decisions: decide how to manage short-term resources and
obligations by adjusting current assets and current liabilities to promote growth in cash flow
Sole Proprietorship correct answers Owned by a single person who is financially responsible for
the actions and obligations of the business.
, Advantages:
Easiest to create and control
Easiest to dissolve
Right to all profits
Disadvantages:
Owner's personal assets at risk due to unlimited liability for firm obligations
Equity only from owner or business profit
Business income taxes as personal income
Difficult to transfer ownership
Partnership correct answers A business owned by more than one person; one or more of them is
financially responsible for the actions and obligations of the business
Advantages:
Limited protection of owner's personal assets
Owner's limited liability for firm obligations
More sources of equity
More sources of expertise
Disadvantages:
Shared control
Shared profit harder to dissolve
The goal of the firm correct answers to maximize shareholder wealth and generate cash flows
