Homework 1 - Emilie Gein- 3289634 Finance 3001 Homework One...

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Emilie Gein- 3289634 Finance 3001 Homework One Chapter One 1.What are the key differences between a corporation and a sole proprietorship? What is the difference between a public and a private corporation? a. Sole proprietorships-manager owns and manages business, unlimited financial liability, personal tax on profits. Corporations- shareholders own business, managers and owners are separate, limited liability, corporate tax on profits and personal tax from dividends. Public corporations are traded in a securities market and are available for purchase by an investor. Private corporations shares are closely held by small groups of managers and investors, cant purchases shares except by negotiating with existing share owners. 1.What is limited liability, and who benefits from it? a. Limited liability is when owners of a corporation (stockholders) are no personally liable for the corporations obligations, this benefits the stockholders. 1.Which of the following are real assets and which are financial?
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This note was uploaded on 03/30/2008 for the course FINA 3001 taught by Professor Someguy during the Spring '08 term at Minnesota.

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Homework 1 - Emilie Gein- 3289634 Finance 3001 Homework One...

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