Exam (elaborations)
COB 300 Finance Exam 1 (Liu) questions well answered to pass
- Course
- Institution
COB 300 Finance Exam 1 (Liu) questions well answered to pass
[Show more]
Content preview
COB 300 Finance Exam 1 (Liu)Finance - correct answer ✔✔the system that includes the circulation of money, the granting of credit,
the making of investments, and the provision of banking facilities
Three Parts Finance is Divided Into - correct answer ✔✔financial management
capital markets
investments
Sarbanes-Oxley Act - correct answer ✔✔a law passed by Congress that requires the CEO and CFO to
certify that their firm's financial statements are accurate.
Proprietorship - correct answer ✔✔a business owned by one person
Partnership - correct answer ✔✔a business owned by two or more people
Advantages of Proprietorship and Partnership - correct answer ✔✔few regulations
no corporate income tax
easy to set up
Disadvantages of Proprietorship and Partnership - correct answer ✔✔unlimited liability
limited life
difficult to raise capital
Corporation - correct answer ✔✔a business owned by stockholders who share in its profits but are not
personally responsible for its debts
Advantages of Corporation - correct answer ✔✔limited liability
ability to raise capital
, easy transfer of ownership
unlimited life
Disadvantages of Corporation - correct answer ✔✔double taxation
expensive set up and report filing
LLC (Limited Liability Company) - correct answer ✔✔limited liability, pass through income taxation,
flexibility
only responsible for their investments
LLP (Limited Liability Partnership) - correct answer ✔✔used for professional firms
S-Corp - correct answer ✔✔a corporation that is taxed as though it were a partnership
the corporation's income is taxed only as the personal income of its stockholders
only 100 stockholders
Maximized as Corporation - correct answer ✔✔limited liability reduces risk borne by investors
firms value is dependent on growth opportunity
greater liquidity
Marginal Investor - correct answer ✔✔an investor whose views determine the actual stock price
Corporate Raider - correct answer ✔✔investor conducting a type of hostile corporate takeover against
the wishes of the company because the company is UNDERVALUED
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now