Chapter 1: Overview of Corporate Finance Questions and Answers High Grade 2023

capital budgeting - -what projects will be profitable and what won't be? -capital structure - -how much of the firms assets will be financed with debts? and how much will be financed by equity? -working capital management - -how will you manage firms everyday financial activities? -sole proprietorships - -businesses that have only one owner - pros: easy to start, no double tax ; cons: unlimited. liability, hard to transfer interest and expand -partnership - -a business owned by two or more people - pros: easy to start, no double tax ; cons: liabilities can be unlimited, must dissolve if one wants to sell, hard to transfer interests -corporations - -businesses that are owned by many investors who buy shares of stock - pros: limited liability, easy to buy/sell ; cons: hard to start, taxed twice, agency issues