Questions from Business Foundation

Q: Explain the concept of adding value in a business, and identify

Explain the concept of adding value in a business, and identify the major types of business. (1) What inputs does a musical group use to create its outputs? (2) Can not-for-profit organizations benefi...

Q: Identify four macroeconomic issues that are essential to understanding the behavior of

Identify four macroeconomic issues that are essential to understanding the behavior of the economy. (1) Are colleges and universities an example of pure competition or monopolistic competition? Why? (...

Q: Compare the advantages and disadvantages of debt and equity financing, and

Compare the advantages and disadvantages of debt and equity financing, and explain the two major considerations in choosing from financing alternatives. (1) What factors might lead a company to gain a...

Q: Identify the major categories of short-term debt financing.

Identify the major categories of short-term debt financing. (1) How does getting a secured loan using accounts receivable as collateral differ from factoring? (2) Why would any seller offer trade fina...

Q: Identify the major categories of long-term debt financing.

Identify the major categories of long-term debt financing. (1) How could rates of technological change affect a company’s decision about whether to buy or lease equipment, vehicles, and other assets?...

Q: Describe the two options for equity financing, and explain how companies

Describe the two options for equity financing, and explain how companies prepare an initial public offering. (1) High-tech firms tend to dominate IPO filings year after year; why do you suppose this i...

Q: Distinguish between common and preferred stock, and explain the difference between

Distinguish between common and preferred stock, and explain the difference between market value and intrinsic value. (1) Assuming both can be calculated with reasonable accuracy, does book value or in...

Q: Explain the three key variables that distinguish bonds, compare the advantages

Explain the three key variables that distinguish bonds, compare the advantages and disadvantages of owning bonds, and list the major types of bonds. (1) Why do bonds offer lower average rates of retur...

Q: Define mutual fund, and explain the advantages and disadvantages of this

Define mutual fund, and explain the advantages and disadvantages of this popular investment vehicle. (1) How might the constant scrutiny and demand for consistent results affect the long-term performa...

Q: Define derivative, and identify the major types of derivatives.

Define derivative, and identify the major types of derivatives. (1) Why would a lender make loans that are so risky that it would consider credit default swaps to protect itself from default? (2) Woul...