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Definition
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Term
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Definition
| Current assets and current and liabilities |
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Definition
| Equally share in the decision makng and in the profits or losses |
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Definition
| 50-50 basis, no personal liability for the firm debts |
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Definition
| federal government has a tax claim on the cash flow |
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Definition
| Loan officer---regional bank |
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Term
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Definition
| international area of finance |
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Definition
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Term
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Definition
| Size, timing and risk of future cash flow |
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Term
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Definition
| Establishing the preferred debt equity level |
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Term
| Working Capital Management |
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Definition
| Determining which customer will be granted credit |
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Term
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Definition
| Has its profits taxed as personal income |
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Term
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Definition
| IS a legal entity separate from its owners |
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Term
| Limited liability company |
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Definition
| Prefers its profits be taxed as personal income to its owner |
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Term
| Primary goal of financial management |
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Definition
| Increasing the market value of the firm |
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Term
| Goal of financial management |
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Definition
| Current market value per share |
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Term
| Sarbanes-Oxley Act of 2002 |
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Definition
| Corporate accounting and financial fraud and increase protection against corporate fruad |
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Term
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Definition
| Separating management from ownership |
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Term
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Definition
| South Wind Product sold 1,000 shares of newly issued stock to Mike |
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Term
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Definition
| Dealers buy and sell from their own inventory |
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Term
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Definition
| Has a physical trading floor |
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Term
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Definition
| has more listed stocks than does the NYSE |
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Term
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Definition
| is one of the most common career |
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Term
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Definition
| is a second investment related career path |
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Term
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Definition
| Manage money for investor; Buy into mutual funds; Pension funds insurances companies |
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Term
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Definition
| Third area; Researches individual investment; Stock---companies---price |
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Term
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Definition
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Term
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Definition
| Commercial loans officers |
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
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Term
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Definition
| Understand the implications of many; Newer financial contracts |
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Term
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Definition
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Term
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Definition
| Have clear understand of financial implications |
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Term
| What is Business Finances |
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Definition
| What long term investments should you take on; Where will you get the long-term financing to pay for your investment; How will you manage your everyday financial activities |
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Term
| Where will you get the long term financing to pay for your investment |
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Definition
| Bring in other owner; Borrow money |
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Term
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Definition
| CFO; Coordinates the activities of the treasure and the controller |
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Term
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Definition
| Cost financial accounting |
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Term
| Cost financial accounting |
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Definition
| Tax payment; Management information system |
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Term
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Definition
| Firms cash/credit; Financial planning; Capital expenditures |
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Term
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Definition
| Capital Budgeting' Capital structure; Working Capital Management |
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Term
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Definition
| The process of planning and managing a firm's long-term investment; Identify investment opportunities that are worth more to the firm; Value of cash flow generated by an asset exceed the cost of that assets; How much cash they expect receive |
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Term
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Definition
| To the specific mixture of long-term debt and equity the firm use to finance its operation; How much should the firm barrow; What are least expensive source;Financing mix, where to raise the money |
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Term
| Working Capital Management |
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Definition
| To firm's short term asset; Day to day; |
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Term
| To firm's short term assets |
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Definition
| Inventory and Short term liabilities |
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Term
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Definition
| How much cash and investor; Should we sell on credit to our customers; How will we obtain any needed short-timer financing |
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Term
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Definition
| Sale Proprietorship; Partnership; Corporation |
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Term
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Definition
| Own by one person; simplest type; Keeps all profits; Unlimited liability; One income; Personal income tax;Amount of equity can be raised is limited |
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Term
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Definition
| Except that there are two or more owners; General Partnership; Limited partnerships; Corporation |
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Term
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Definition
| Not easy to transfer; All parnters share in increase and decrease; Unlimited liability; Partnership agreement |
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Term
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Definition
| Written agreement important; Oral or written |
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Term
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Definition
| One or more general partnership; One or more limited partnership; Don't actively participate; Amount--contributes; Real estate ventures; Terminates; Easy to transfer |
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Term
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Definition
| Is the most important form of business organization; Legal person; Borrow money/buy land; Articles of incorporation; Bylaw; Corporation name, intended life, business purpose, number of shareholders |
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Term
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Definition
| How the corporation regulates its own existences; Stockholder-board director |
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Term
| Disadvantages of Corporation |
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Definition
| Pay taxes; Dividends; Double taxation; Name |
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Term
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Definition
| Joint stock companies; Public limited companies; Limited liability companies |
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Term
| Goal of Financial Management |
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Definition
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Term
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Definition
| Most commonly goal; Not very precise objective |
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Term
| The goal of financial management in a corporation |
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Definition
| Decides for the stock holder; Good increase stocks, bad decrease stock; Is to maximize the current value per share of the existing stock |
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Term
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Definition
| What is the appropriate goal when the firms has not trade stock |
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Term
| The total value of the stock in a |
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Definition
| corporations is to simply equal to the value of the owner equity |
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Term
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Definition
| Sarbox; Strength then protection--corporation account fraud; 11/15/2004; Public corporation---review and sign annual report |
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Term
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Definition
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Term
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Definition
| Relationship between manager and stock holder; Principal hires the agent; Agency problem; Agency cost |
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Term
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Definition
| The possibility of conflict of interest between the owners and management of a firm |
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Term
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Definition
| The new investment is expected to favorable impact the stock price but it is also a relatively risk venture |
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Term
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Definition
| One or more general partnership; One or more limited partnership; Don't actively participate; Amount--contributes; Real estate ventures; Terminates; Easy to transfer |
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Term
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Definition
| Is the most important form of business organization; legal person; Borrow money/buy land; Articles of incorporation; Bylaw; Corporation name, intended life, business purpose, number of shareholders; How the corporation regulates its own existence; Stockholder--board director |
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Term
| Disadvantages of Corporation |
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Definition
| Pay taxes; Dividends; Double taxation; Name |
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Term
| Corporation (Double Taxation) |
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Definition
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Term
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Definition
| Joint Stock companies; Public limited companies; Limited liability companies |
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Term
| Cash Flow to and from the firm |
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Definition
| The firm invest the cash in current and fixed asset; Those assets generates cash; Some of which goes to pay corporate taxes; After taxes are paid, some of this cash flow is reinvested in the firm; The rest goes back to the financial markets |
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Term
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Definition
| Bringing buyer and seller together |
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Term
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Definition
| Original sales of securities by government and corporations; To skip SEC--sold to insurance companies or mutual funds |
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Term
| Primary Markets (2 types) |
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Definition
| Public offering and Private placement |
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Term
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Definition
| Are those in which these in which these securities are bought and sold after the original sale; One owner or creditor selling to other; Transferring owners of corporation securities |
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Term
| Secondary Market (Dealers) |
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Definition
| By and sell for their self; over the counter; Long-term debt |
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Term
| Secondary Market (Auction) |
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Definition
| Physical place; To match those who wise to sell to those who want to buy |
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Term
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Definition
| issued by corporation---registered by SEC |
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Term
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Definition
| issued government and corporation registered by SEC |
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Term
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Definition
| Work with financial assets such as stocks and bonds; Value of financial assets, risk vs return, and asset all location |
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Term
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Definition
| Stockbroker or financial advisory; Portfolio manager; Security analyst |
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Term
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Definition
| Companies that specialize in financial ; |
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Term
| Financial Institution (Banks) |
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Definition
| Commercial and investment, credit union, saving and loans |
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Term
| Other Financial Instituion |
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Definition
| Insurance companies, Brokerage firms |
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Term
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Definition
| An area of specialization within each of the areas discussed so far; May allow you to work in other countries or at least travel on a regular basis; Need to be familiar with exchange rates and political risk; Need to understand the customs of other countries; speaking a foreign language fluently is also helpful |
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Term
| Advantages of Sole Proprietorships |
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Definition
| Easiest to start; Least regulated; Single owner keeps all of the profit; Taxed once as personal income |
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Term
| Disadvantages of Sole Proprietorships |
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Definition
| Limited to life of owners; Equity capital limited to owner's personal wealth; Unlimited liability; Difficult to sell ownership interest |
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Term
| Advantages of Parternership |
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Definition
| Two or more owners; More capital available; Relatively easy to start; Income taxed once as personal income |
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Term
| Disadvantages of Partnerships |
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Definition
| Unlimited liability; Partnership dissolve when one partner dies or wishes to sell; Difficult to transfer ownership |
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Term
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Definition
| Limited and unlimited liabilities; separation of ownership and management; Transfer of ownership is easy; Easier to raise capital |
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Term
| Corporation Disadvantages |
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Definition
| Separation of ownership and management; Double Taxation |
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Term
| What should be the goal of a corporation |
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Definition
| Maximize profit; Minimize cost; Maximize market share; Maximize the current value per share of the company's existing stock; Maximize the market value of the existing owners' equity |
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Term
| Does this mean we should be anything and everything and everything to maximize owner wealth |
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Definition
| Outsourcing; Off-shoring; Enron; Corporate support of charities |
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Term
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Definition
| Driven by corporate scandals; Intended to strengthen protection against accounting fraud and financial malpractices; Compliance every costly; |
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