{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FI515Week1 - W1 Student Homework Template Week One Assigned...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
W1 Student Homework Template Week One: Assigned Chapter Questions & Problems Chapter 1: Questions 1-1 (A-K) and 1-2 Chapter 2: Questions 2-1 and 2-3 Chapter 2: Problems 2-9 and 2-14 Chapter 1 Questions Question Answer 1.1 a. Proprietorship – an unincorporated business owned by one individual. Partnership – when two or more persons associate to conduct a non-corporate business for profit. Corporation – a legal entity created by a state and it is separate and distinct from its owners and managers. b. Limited partnership – certain partners are designated general partners and others limited partners. The limited partners are liable only for the amount of their investment, while the general partners have unlimited liability. Limited liability partnership- all partners enjoy limited liability with regard to the business’s liabilities, with their potential losses limited to their investment in the LLC. Professional corporation – provides a way for groups of professionals to incorporate and thus avoid certain types of unlimited liability, yet still be held responsible for professional liability (doctors, lawyers, and accountants for example). c. Stockholder wealth maximization – the main priority for managers should be stockholder wealth maximization. Since managers are supposed to be working on behalf of the shareholders, they should pursue policies that enhance shareholder value.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
d. Money market – markets for short-term, highly liquid debt securities Capital market – intermediate or long-term debt and corporate stocks. Primary market – corporations raise new capital Secondary market – existing, already outstanding, securities are traded among investors. e. Private markets – transactions are worked out directly between two parties Public markets – standardized contracts are traded on organized exchanges. Derivatives – Claims whose value depends on what happens to the value of some other assets. f. Investment banker - a middleman between businesses and investors. Financial service corporation – offers a wide range of financial services such as brokerage operations, insurance, and commercial banking.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern