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. There are 3 most common legal forms of business organization.

Resolved Question:

. There are 3 most common legal forms of business organization. Name those 3:


2. The corporation's goal is to maximize the "botXXXXX XXXXXne" or profit. T/F

4. The ________________________________ gives the details of a company's financial performance
for the year while the _______________________shows a company's financial position at
any given time.

5. Amortizing a loan into equal annual payments involves finding the present payments
whose future value at the loan interest rate equals the amount of the initial principal borrowed.

6. Jody Smith wishes to determine the number of years it will take for her initial $1,000 deposit,
earning 8% annual interest, to grow to equal $2,500. In other words, at an 8% annual rate
of interest, how many yeas, n, will it take for Ann's $1,000, PV to $2,500, FVn?


7. Assume a company makes a $2,500 deposit in its money market account. If this account
is currently paying 0.7% (yes, less than 1%), what will the account balance be after 1 year?


8. Time value of money is one of the most important concepts in finance. Money that the firm
has in its possession today is more valuable than money in the future because the money it
now has can be invested and earn positive returns.

9. You can deposit $10,000 into an account paying 9% annual interest either today or exactly
10 years from today. How much better off will be you at the end of 40 years if you decide
to make the initial deposit today rather than 10 years from today?


10 There's a chance that a firm will not be able to cover its financial obligations. The level
is driven by the predictability of the firm's operating cash flows and its fixed-cost
financial obligations. Which risk does this represent?

A. Market Risk
B. Purchasing Power Risk
C. Financial Risk


11. The risk-free rate on T-bills recently was 1.23%. If the real rate of interest is estimated to be 0.80%,
what was the expected level of inflation?


12. The claims of preferred stockholders are senior to those of the common stockholders with
respect to the distribution of both earnings and assets.

13. ____________________ capitalists are typically business entities that are organized for the purpose
Submitted: 4 years ago.
Category: Multiple Problems
Expert:  Josie-Mod replied 4 years ago.

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Customer: replied 4 years ago.
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Expert:  F. Naz replied 4 years ago.
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