1. (TCO A) In the United States, the most common type of business by number of businesses is the _____. (Points : 5) sole proprietorship
C corporation
S corporation
LLC
| Question 2. 2. (TCO A) The one thing that makes a corporation different from the other forms of business ownership is (Points : 5) |
legally, the corporation is the same as its owners.
it requires all owners to share liability equally.
it is a legally defined entity, completely separate from its owners.
it protects small shareholders, allocating most of any liability to those who own more stock.
5. (TCO G) If you were a manager of a company, which of the three right side components of the DuPont Identity would you want to increase and which would you want to decrease, other things being equal? Give a specific example for how to do that for each of the three. (Points : 20)
10. (TCO D) What is β and why is it important to investors and issuers of stock? Describe the behavior of stocks with βs of greater than one, less than one, and less than zero. (Points : 30)
12. (TCO A) What is the difference between capital structure and capital budgeting? Explain and give an example of a capital structure decision and an example of a capital budgeting decision. (Points : 25)
13. (TCO H) What is the Cash Conversion Cycle (CCC)? Name the components of the CCC and explain why the CCC is important to business. (Points : 30)
