©SIRJOEL EXAM SOLUTIONS
10/10/2024 11:44 AM
HCAD760 Module 1 Exam Questions With
Verified Answers.
Accounting - answer✔measurement in financial (dollar) terms of events that reflect the
resources, operations, and financing of an organization
Financial Management - answer✔provides the theory, concepts, and tools necessary to help
managers make better financial decisions
Characteristics of a business - answer✔• Obtains financing from marketplace
• Uses funds to buy assets
• Operates the assets to provide goods or services
Sells the goods or services to create revenue
4 Cs of finance - answer✔1) Cost minimization 2) Cash sufficiency 3) Capital access 4) Control
of financial resources
Proprietorship - answer✔business owned by a single individual
Partnership - answer✔a business owned by two or more people
Corporation - answer✔Legal business directly separate from owners or management.
Advantages of Proprietorship & Partnership - answer✔ease of formation, few regulations, no
corp. income taxes
Disadvantages of Proprietorship & Partnership - answer✔limited life, difficult to transfer
ownership, unlimited liability
Advantages & Disadvantages of Corporations - answer✔Advantages: unlimited life, easy
transfer of ownership, limited liability, ease of raising capital
Disadvantages: Cost of formation and reporting, double taxation for investor-owned corporations
10/10/2024 11:44 AM
HCAD760 Module 1 Exam Questions With
Verified Answers.
Accounting - answer✔measurement in financial (dollar) terms of events that reflect the
resources, operations, and financing of an organization
Financial Management - answer✔provides the theory, concepts, and tools necessary to help
managers make better financial decisions
Characteristics of a business - answer✔• Obtains financing from marketplace
• Uses funds to buy assets
• Operates the assets to provide goods or services
Sells the goods or services to create revenue
4 Cs of finance - answer✔1) Cost minimization 2) Cash sufficiency 3) Capital access 4) Control
of financial resources
Proprietorship - answer✔business owned by a single individual
Partnership - answer✔a business owned by two or more people
Corporation - answer✔Legal business directly separate from owners or management.
Advantages of Proprietorship & Partnership - answer✔ease of formation, few regulations, no
corp. income taxes
Disadvantages of Proprietorship & Partnership - answer✔limited life, difficult to transfer
ownership, unlimited liability
Advantages & Disadvantages of Corporations - answer✔Advantages: unlimited life, easy
transfer of ownership, limited liability, ease of raising capital
Disadvantages: Cost of formation and reporting, double taxation for investor-owned corporations
