Things to know for Exam 1 (Chapters 1 and 3) Chapter 1 Read the whole chapter thoroughly at least a couple of times What are some important questions to be answered using finance? What is corporate finance? What are the three major financial management decisions discussed in Chapter 1? What does each of them do? What are the three major forms of business organization? Should be able to define each and to compare advantages and disadvantages for each. Should know what advantage S corp or LLC has What is double taxation? What is the goal of financial management? What are agency relationship, agency problem, and controlling mechanisms for such problems? You should know how to classify financial markets into primary and secondary, money and capital market, and credit and equity market Chapter 3 Read the whole chapter thoroughly at least a couple of times Briefly review your accounting lecture notes Should know to read and understand B/S, I/S, and Statement of CFs
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