COB 300 FINANCE EXAM 1 - ELIZ
OZCAN QUESTIONS WITH VERIFIED
ANSWERS
\.forms of business organization - ANSWERS✔-sole proprietorship, partnership,
corporation
\.sole proprietorship - ANSWERS✔-- Single owner, easy to start, taxed once
- unlimited personal liability, difficult to transfer ownership
\.partnership - ANSWERS✔-- two or more owners, more capital available, taxed
once
- unlimited liability, dissolves when a partner leaves
\.corporation - ANSWERS✔-- separate legal entity, easy to raise capital, limited
liability
- double taxation, more regulated
\.goals of the business enterprise - ANSWERS✔-main goal: increase the value of
the firm
- balancing interest of shareholders and society
, \.finance - ANSWERS✔-focuses on managing money and investments,
emphasizing the time value of money
\.accounting - ANSWERS✔-involves recording and reporting financial transactions
\.economics - ANSWERS✔-studies the production, distribution, and consumption
of goods and services
\.Intrinsic value - ANSWERS✔-long term concept indicating a stocks true worth
\.stock prices - ANSWERS✔-can deviate from intrinsic values in the short run
\.market equilibrium - ANSWERS✔-stock price = intrinsic value
\.stockholder-manager conflicts - ANSWERS✔-managers may pursue goals that
conflict with maximizing shareholder wealth
\.stockholder-debtholder conflict - ANSWERS✔-stockholders prefer riskier project
while debtholders want to limit risk
\.business ethics - ANSWERS✔-Ethical business practices impact long-term
profitability
\.market capitalization - ANSWERS✔-total value of a company's shares
OZCAN QUESTIONS WITH VERIFIED
ANSWERS
\.forms of business organization - ANSWERS✔-sole proprietorship, partnership,
corporation
\.sole proprietorship - ANSWERS✔-- Single owner, easy to start, taxed once
- unlimited personal liability, difficult to transfer ownership
\.partnership - ANSWERS✔-- two or more owners, more capital available, taxed
once
- unlimited liability, dissolves when a partner leaves
\.corporation - ANSWERS✔-- separate legal entity, easy to raise capital, limited
liability
- double taxation, more regulated
\.goals of the business enterprise - ANSWERS✔-main goal: increase the value of
the firm
- balancing interest of shareholders and society
, \.finance - ANSWERS✔-focuses on managing money and investments,
emphasizing the time value of money
\.accounting - ANSWERS✔-involves recording and reporting financial transactions
\.economics - ANSWERS✔-studies the production, distribution, and consumption
of goods and services
\.Intrinsic value - ANSWERS✔-long term concept indicating a stocks true worth
\.stock prices - ANSWERS✔-can deviate from intrinsic values in the short run
\.market equilibrium - ANSWERS✔-stock price = intrinsic value
\.stockholder-manager conflicts - ANSWERS✔-managers may pursue goals that
conflict with maximizing shareholder wealth
\.stockholder-debtholder conflict - ANSWERS✔-stockholders prefer riskier project
while debtholders want to limit risk
\.business ethics - ANSWERS✔-Ethical business practices impact long-term
profitability
\.market capitalization - ANSWERS✔-total value of a company's shares
