Exam 8: Firms,the Stock Market,and Corporate Governance

Torrie is thinking of starting up a small business selling hand-painted wine glasses.She is considering setting up her business as a sole proprietorship.What is one disadvantage to Torrie of setting up her business as a sole proprietorship?

How do a partnership and a corporation differ?

Torrie is thinking of starting up a small business selling hand-painted wine glasses.She is considering setting up her business as a sole proprietorship.What is one advantage to Torrie of setting up her business as a sole proprietorship?

Garrison is the chief financial officer (CFO)of the Colorado Drone manufacturing company and is also on the company's board of directors.Garrison is considered ________ of the company.

David Myers,former controller for WorldCom,pleaded guilty to falsely reporting costs for WorldCom that were ________ than they actually were,resulting in reported accounting profits for WorldCom that were ________ than their actual level.

What is the difference between economic profit and accounting profit?

Damian wants to start a business where he is the only owner and the company does not issue stock.The type of business Damian wants to start is a

What happens in the primary market?

The financial statements of firms generally are audited by

What is a secondary market?

In the United States,________ profits are taxed at both the corporate level and when investors receive dividends.

Walmart wants to raise $250 million to finance the renovation of their retail stores,and the company wishes to raise the funds through indirect finance.Which of the following methods could it use?

Of the different types of businesses,a corporation has the ________ government rules and the ________ government regulations affecting it.

What type of business has the potential for double taxation of profits and why?

How much is a bond worth if it pays $20 in coupon payments at the end of each year for 4 years and $1,000 at the end of the fourth year,if the interest rate is 5%?

If a corporate bond with face value of $1,000 has an interest rate of eight percent paid once a year for a term of 30 years,what is the size of the annual coupon payment?

Yolanda received a $100 savings bond for her birthday.The bond pays $100 at maturity,which is in five years.If the interest rate is 3%,the bond has a present value of $86.26.

The limited ability to raise funds is a disadvantage for

If a corporate bond with face value of $1,000 has an interest rate of seven percent paid once a year for a term of 10 years,what is the size of the coupon payment?

Tanesha sells homemade candles over the Internet.Her annual revenue is $64,000 per year,the explicit costs of her business are $17,000,and the opportunity costs of her business are $22,000.What is her accounting profit?