Examen
Financial Management Chapter 1-5 Rutgers exam questions and answers
- Grado
- Institución
Financial Management Chapter 1-5 Rutgers exam questions and answers
[Mostrar más]Vista previa 3 fuera de 21 páginas
Vista previa 3 fuera de 21 páginas
Añadir al carrito
Añadir al carrito
Vendedor
Seguir
BRAINBOOSTERS
Comentarios recibidos
Vista previa del contenido
Financial ManagementChapter 1-5 Rutgers
exam questions and
answers
Financial institutions
are businesses that deal primarily in financial
matters (e.g., banks and insurance companies)
Capital budgeting
is the process of planning and managing a firm’s
long-term investments
Ex: •Evaluating the size, timing, and risk of future
cash flows
Capital structure
is the mixture of debt and equity maintained by a
firm
Ex:•How much should the firm borrow (i.e., what
mixture of debt and equity is best)?
•What are the least expensive sources of funds for
the firm?
Working capital management
short-term assets and liabilities
,Three different legal forms of business
organization
1.Sole proprietorship
2.Partnership
3.Corporation
Sole proprietorship
is a business owned by a single individual
Advantages include the following:
•Simple
•Least regulated
•Owner keeps all the profits!
Disadvantages include the following:
•Owner has unlimited liability for business debts
•All business income is taxed as personal income
•Amount of equity that can be raised is limited to
the amount of the proprietor’s personal wealth
•Ownership may be difficult to transfer
Partnership
is a business formed by two or more individuals or
entities
•In a general partnership, all the partners share in
gains or losses, and all have unlimited liability
for all partnership debts, not just some particular
share.
, •In a limited partnership, one or more general
partners will run the business and have unlimited
liability, but there will be one or more limited
partners who will not actively participate in the
business. A limited partner’s liability for business
debts is limited to the amount that partner
contributes to the partnership.
Corporation
a business created as a distinct legal entity
composed of one or more individuals or entities
Advantages include the following:
•Ownership can be readily transferred
•Life of corporation is unlimited
•Limited liability for stockholders
Significant disadvantage includes the following:
•Double taxation, meaning corporate profits are
taxed twice, first at the corporate level when they
are earned and again at the personal level when
they are paid out
Goal of Financial Management
maximize the current value per share of the
existing stock
Add value for Shareholders
Sarbanes-Oxley Act (i.e., "SOX")
Key requirements of SOX include the following:
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!
Preguntas frecuentes
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.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $15.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
45,681 summaries were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now