Bus. Finance Exam 1
Terms in this set (14)
a business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:
a business owned by a solitary individual who has unlimited liability for its debt is called a:
The management of a firm's long-term investments:
A conflict of interest between the corporate shareholders and the corporate managers:
Determining how much debt should be assumed to fund a project.
Capital structure decision
Maximum loss limited to the capital invested.
Primary advantage of being a limited partner instead of a general partner.
II. Limited Partnership life
III. Active involvement in the firm by all the partners/
IV. Unlimited personal liability for all partnership debts.
Apply to a partnership that consists solely of general partners:
Corporations can raise large amounts of capital generally easier than partnerships can.
They have been hired to represent the interests of the current shareholders.
Why should financial managers strive to maximize the current value per share of the existing stock?
The financial statement that shows the accounting value of a firm's equity as of a particular date:
The percentage of the next dollar you earn that must be paid in taxes is referred to as the:
Cash flow from assets
The cash flow of a firm that is available for distribution to the firm's creditors and stockholders is called the:
Net working capital may be a negative value.
Net working capital
Taxes reduce both net income and operating cash flow