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FIN 300 (Sacks) – Midterm #1 Study Guide Chapter 1-510 questions!Cheat/Formula Sheet!!! (one side)All topics: Study what it is and how it works. If topics contain equations – be sure to be able to apply them. If topics include graphs – be sure you understand them and can reproduce them.Chapter 1 and 2Forms of Business OrganizationoSole proprietorship- simply refers to a person who owns the business and is personally responsible for its debts. oPartnershipGeneral partnerAgeneral partnershipis an arrangement by which two or more persons agree to share in all assets, profits and financial and legal liabilities of a business. Such partners have unlimited liability, which means their personal assets are liable to the partnership'sobligations.Limited liability partnersA limited liability partnership is a partnership in which some or all partners have limited liabilities.oCorporationS corpC corpoLLPoLLCCapital Budgeting vs Financial Decisions
oCapital Budgeting- what types of productive assets to purchaseoFinancing decisions- ways to raise cash and pay for investmentsPrimary vs. Secondary MarketsoPrimary Market- additional shares sold by established, publicly owned companiesoSecondary Markets- trading in the outstanding shares of established, publicly owned companies.