Chapter 1 - FIN3000 11:59 CompleteSyllabusQuiz

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FIN3000 11:59 Complete Syllabus Quiz Information – helps you out in situations. Have an upper edge. Ex: know value of  product. Authentic vs. knock off Uncertainty/Risk – Uncertainty is related to Information Converting assets to equity – giving two xbox’s for painting.  Can also Work for equity Debt – bring in other owners Outflow ------------------------ Inflow   (inflow is uncertain) Time matters between giving and getting Markets – garage sale is market…buyers and sellers trying to acquire. Can sell in future market Difference in information in different markets Time, markets, information, uncertainty 
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Opportunity cost is very important…as an economist and in finance Information influences decision. Can change decision CHAPTER 1 What long term investments should the firm take on?  CAPITAL BUDGETING  o Single most important decision for firm. Will die if not good Where will we get the long term financing to pay for the investment? Debt equity?  CAPITAL STRUCTURE How will we manage the everyday financial acitivities of the firm?  WORKING CAPITAL MANAGEMENT Bad Information affects how much you put the worth of an object 3 Types:  Sole proprietorship :  Advantages :  Only taxed once as personal income. Single Owner takes all.  Least regulation. Easy to Start.
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Disadvantages :  Limited to life of owner, Equity Capital limited to owner’s  personal wealth, Unlimited liability, Difficult to sell ownership interest. o 50/50 can be bad because decisions are equal someone should be able to  step up. Recommended not to do. o
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This note was uploaded on 10/05/2010 for the course FIN 3000 taught by Professor Ackute during the Spring '10 term at Kennesaw.

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Chapter 1 - FIN3000 11:59 CompleteSyllabusQuiz

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