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ASU FIN 300 EXAM 1 2026 100% PASS
ASSURED EXAMINATION SOLUTIONS
Productive assets - correct answer- the long-
term tangible and intangible assets a firm
uses to generate cash flows
3 fundamental decisions in financial
management - correct answer- a. Capital
budgeting- which productive assets to buy
b. Financing decisions- raising money to buy
more p assets, mainly through selling long
term debt and equity
c. Working capital decisions- involve how
firms manage their current assets and
liabilities. Enough money to pay the bills and
any money left over is invested to earn a
return
Forms of Business Organization - correct
answer- a. Sole proprietorship- earnings taxed
as personal income, owner has all of the
liability
b. Partnership- more management skills with
two people, complicated decision making
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c. Corporation- separate legal status and
ability to recruit professional management,
corporate income taxed twice, conflicting
goals between owners and management
d. LLC- owners not personally responsible,
combine corporation with sole proprietorship
C Corporation - correct answer- The most
common type of corporation, which is a legal
business entity that offers limited liability
to all of its owners, who are called
stockholders
S Corporation - correct answer- corporation
taxed as though it were a partnership with
restrictions on shareholders
B Corporation - correct answer- a business
that explicitly seeks to blend its social
objectives with its financial goals
The goal of the firm - correct answer-
maximize shareholder wealth
ASU FIN 300 EXAM 1 2026 100% PASS
ASSURED EXAMINATION SOLUTIONS
Productive assets - correct answer- the long-
term tangible and intangible assets a firm
uses to generate cash flows
3 fundamental decisions in financial
management - correct answer- a. Capital
budgeting- which productive assets to buy
b. Financing decisions- raising money to buy
more p assets, mainly through selling long
term debt and equity
c. Working capital decisions- involve how
firms manage their current assets and
liabilities. Enough money to pay the bills and
any money left over is invested to earn a
return
Forms of Business Organization - correct
answer- a. Sole proprietorship- earnings taxed
as personal income, owner has all of the
liability
b. Partnership- more management skills with
two people, complicated decision making
, 2 | Page
c. Corporation- separate legal status and
ability to recruit professional management,
corporate income taxed twice, conflicting
goals between owners and management
d. LLC- owners not personally responsible,
combine corporation with sole proprietorship
C Corporation - correct answer- The most
common type of corporation, which is a legal
business entity that offers limited liability
to all of its owners, who are called
stockholders
S Corporation - correct answer- corporation
taxed as though it were a partnership with
restrictions on shareholders
B Corporation - correct answer- a business
that explicitly seeks to blend its social
objectives with its financial goals
The goal of the firm - correct answer-
maximize shareholder wealth
