Questions from General Finance


Q: Define (a) sole proprietorship, (b)

Define (a) sole proprietorship, (b) partnership, and (c) corporation.

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Q: Identify the primary characteristics of each form of legal business organization.

Identify the primary characteristics of each form of legal business organization.

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Q: Your first assignment in your new position as assistant financial analyst at

Your first assignment in your new position as assistant financial analyst at Caledonia Products is to evaluate two new capital-budgeting proposals. Because this is your first assignment, you have been...

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Q: Using the following criteria, specify the legal form of business that

Using the following criteria, specify the legal form of business that is favored: (a) organizational requirements and costs, (b) liability of the owners, (c) the continuity of the business, (d) the tr...

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Q: Why might a large corporation want to raise long-term capital

Why might a large corporation want to raise long-term capital through a private placement rather than a public offering?

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Q: Distinguish between the money and capital markets.

Distinguish between the money and capital markets.

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Q: What major benefits do corporations and investors enjoy because of the existence

What major benefits do corporations and investors enjoy because of the existence of organized security exchanges?

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Q: Explain the term opportunity cost with respect to the cost of funds

Explain the term opportunity cost with respect to the cost of funds to the firm.

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Q: Compare and explain the historical rates of return for different types of

Compare and explain the historical rates of return for different types of securities.

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Q: It has been said that in recent years the difference between an

It has been said that in recent years the difference between an organized exchange and the over-the-counter market has blurred. What does this statement mean and do you think it is correct?

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