[Discussion] - 1 Handout

[Discussion] - 1 Handout - ? Limited liability, double...

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F ILL IN THE B LANK AND D EFINE Real and Financial Market Real market: where goods are actually exchanged. Financial market: investing/financing operations. Principals and Agents Principals: Stockholders/owners of the company. Agents: those who execute the will of the stockholders. Agency Problem Conflict of interest between principals and agents. Resolved by things like stock options, etc. Primary and Secondary Market Primary: Where stock is initially issued by the firm to the market. Secondary: Exchange from stockholder to stockholder. W HAT ARE THE THREE DIFFERENCES BETWEEN A CORPORATION AND A PARTNERSHIP
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Unformatted text preview: ? Limited liability, double taxation, indefinite lifetime (corporation) W HICH IS THE CORRECT BALANCE SHEET STRUCTURE ? (a) Assets Liabilities (b) Equity Assets (c) Assets Liabilities (d) Assets Equity Liabilities Equity Liabilities Equity W HAT IS THE CORRECT ORDERING OF ASSETS ON THE BALANCE SHEET ? (a) Cash, Inventory, Accounts Recievable, Property/Equipment, Intellectual Property (b) Cash, A/R, Inventory, Property/Equipment, Intellectual Property, (c.) Cash, Property/Equipment, A/R, Inventory, IP. (d) Property/Equipment, A/R, IP, Cash, Inventory...
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