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MBA 702 - Exam 1 Questions and Complete Solutions Graded A+
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Captial Budgeting - Answer: What long-term investments should you take on? What lines of business will you be in and what sorts of buildings, machinery, and equipment will you need? Capital Structure - Answer: Where will you get the long-term financing to pay for your investment? Will you brin...

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  • August 12, 2024
  • 11
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • mba 702 exam 1 questions and complete solutions

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  • LSUS MHA 706
  • LSUS MHA 706

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MBA 702 - Exam 1
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]

, Captial Budgeting - Answer: What long-term investments should you take on? What lines of business
will you be in and what sorts of buildings, machinery, and equipment will you need?



Capital Structure - Answer: Where will you get the long-term financing to pay for your investment? Will
you bring in other owners or will you borrow the money?



Working Capital Management - Answer: How will you manage your everyday financial activities such as
collecting from customers and paying suppliers?



Treasurer - Answer: Oversees cash management, credit management, capital expenditures, and
financial planning



Controller - Answer: Oversees taxes, cost accounting, financial accounting and data processing



Three major forms os business organization in the United States - Answer: Sole Proprietorship,
Partnership, Corporation



Sole Proprietorship - Answer: A business owned by one person. This is the simplest type of business to
start. It is the least regulated form of organization. There is no distinction between personal and
business income, so all business income is taxed as personal income.



Partnership - Answer: A business with two or more owners. In a general partnership, all the partners
share in gains or losses, and all have unlimited liability for all debts. In a limited partnership, one or more
general partners will run the business and have unlimited liability, but there will also be one or more
limited partners who do not actively participate in the business



Corporation - Answer: A legal "person" separate and distinct rom its owners. Can borrow money and
own property, can sue and be sued, and can enter into contracts. Most important form in terms of size.



Advantages of Sole Proprietorship - Answer: Easiest to start

Least regulated

Single owner keeps all the profits

Taxed once as personal income

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