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WGUC 214 FINANCIAL MANAGEMENT FINAL EXAM 2024/2025 PREP QUESTIONS AND ANSWERS GRADED A+
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WGU 214 FINANCIAL MANAGEMENT FINAL EXAM 2024/2025 PREP QUESTIONS AND ANSWERS GRADED A+
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WGU 214 FINANCIAL MANAGEMENTWGU 214 FINANCIAL MANAGEMENT FINAL
EXAM 2024/2025 PREP QUESTIONS AND
ANSWERS GRADED A+
Finance
Finance: the process of transferring money from
savers to borrowers through financial markets/institutions.
Difference Subject Areas in Finance
Investment (Savers)
Corporate Finance (Borrowers)
Financial Markets & Institutions (Intermediaries)
3 main forms of business organizations with bonus
There are three main forms of business organizations:
1. Sole Proprietorship
2. Partnership
3. Corporations
Limited liability Companies (LLC) is hybrid between partnership and corporation.
,WGU 214 FINANCIAL MANAGEMENT
Proprietorship and Partnership Adv and Dis
Advantages:
Easy to form
Few regulations
Lower tax
Disadvantages:
Unlimited liability
Limited life
Difficult to raise capital
Corporation Adv. and Disadvantage
Advantages:
1. Limited liability
2. Unlimited life
3. Easy to raise capital
Disadvantages:
1. Hard to form
2. More regulations
3. High tax
4. Agency problem
, WGU 214 FINANCIAL MANAGEMENT
Finance within a corporation
What is management's primary goal?
Maximize the wealth of stakeholders in a socially responsible way so that the
wealth is maximized long term
Getting Capital
IPO with underwriter and issuing secondary stock
difference in 3 financial statements
Income statement - summarizes a firm's revenues and expenses over a given period
of time.
Balance sheet - provides a snapshot of a firm's financial position at one point in
time.
Statement of cash flows - reports the impact of a firm's activities on cash flows
over a given period of time.
Difference between sales and expenses
Profit
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