Chapter One Homework

Chapter One Homework - Finance Principles 311-04 Chapter 1...

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Finance Principles 311-04 Chapter 1 Homework Qs: 1-3,5,6,7,8 August 28, 2011 Critical Thinking and Concepts Review 1. The three types of financial management decisions are; what long-term investments should the firm take on? Such as acquiring another business, where will they get the long-term financing to pay for the investments? Such as loans, and how will they manage the everyday financial activities of the firm? Their profit. 2. The four primary disadvantages to the sole proprietorship and partners forms of a business organization and there benefits as opposed to a corporation are
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for a Sole Proprietorship the disadvantages would be; Limited to life of owner, equity capital limited to owner’s personal wealth, unlimited liability, and difficult to sell ownership interest. While the advantages over a corporation would be; Easiest to start, least regulated, single owner keeps all the profits, and taxed once as personal income. The disadvantages to a partnership would be; Unlimited liability (general partnership, limited
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This note was uploaded on 03/27/2012 for the course FIN 001 taught by Professor Nkwelle during the Spring '12 term at Howard.

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Chapter One Homework - Finance Principles 311-04 Chapter 1...

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