FIN 300 Exam 1 || Already Graded A+.

FIN 300 Exam 1 || Already Graded A+.

Investments correct answers Financial assets such as stocks and bonds


Financial Institutions correct answers -Banks (commercial and investment), credit unions,
savings and loans
-Insurance companies
-Brokerage firms
-Mutual funds/Hedge funds


Corporate Finance correct answers -Managing the firm's short/long-term investments
-Financing the firm's growth
-Returning capital to stakeholders


Forms of Business Organization correct answers 1.) Sole Proprietorship
2.) Partnership
--General
--Limited
3.) Corporation


Sole Proprietorship correct answers Definition: business owned by one person
-ADVANTAGES:
1.) Easiest to start
2.) Least regulated
3.) Single owner keeps all of the profits
4.) Taxed once as personal income


-DISADVANTAGES:

, 1.) Limited to life of owner
2.) Equity capital limited to owner's personal wealth
3.) Unlimited liability
4.) Difficult to sell ownership interest


Partnership correct answers Definition: business owned by two or more persons
-ADVANTAGES:
1.) Two or more owners
2.) More capital available
3.) Relatively east to start
4.) Income taxed once as personal income


-DISADVANTAGES:
1.) Unlimited liability
--General partnership
--Limited partnership
2.) Partnership dissolves when one partner dies or wishes to sell
3.) Difficult to transfer ownership


Corporation correct answers Definition: a legal "person" distinct from owners and a resident of a
state
-ADVANTAGES:
1.) Limited liability
2.) Unlimited life
3.) Transfer of ownership is easy
4.) Easier to raise capital