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Unformatted text preview: Q2 What is the purpose of financial management? Financial management is the process for and the analysis of making financial decisions in the business context, and the purpose of financial management is to look at firms decisions in acquiring and utilizing cash received from investors or from retained earnings. Describe the kinds of activities that financial management involves? The activities that financial management involves are decisions about, how to organize the firm in a manner that will attract capital, how should capital be raised, which projects to fund, how much capital to retain in the firm for ongoing operations and new projects, how to minimize taxation, and how to go about paying back capital providers. Q5 What are the three basic forms of business ownership? The three basic forms of business ownership include Sole Proprietorships, the most common type of business in the United States, and it is any unincorporated business owned by a single individual; Partnership, which is an organizational form that features multiple individual owners; and Corporations, which are legally independent entities entirely separate from their owners....
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- Spring '11