Finance - Midterm

The over-the-counter market is

• the New York Stock Exchange.

• an organised stock exchange.

• a place where securities are bought and sold.

• an intangible market for unlisted securities.

The wealth of the owners of a corporation is represented by

• Number of employees
• Debts owed by the company
• Revenue generated by the company
• Shares in the company

A major weakness of a partnership is

• Unlimited liability for debts
• Limited liability for debts
• Equal distribution of profits
• Limited liability among partners

The financial manager is interested in the cash inflows and outflows of the firm, rather than the accounting data, in order to ensure:

• Monitoring liquidity and financial stability.
• Improving customer satisfaction
• Minimizing employee turnover
• Maximizing profits and revenue

Primary and secondary markets are

• Primary markets are where existing securities are bought and sold among investors, while secondary markets are where new securities are issued for the first time.
• Primary markets are where new securities are issued for the first time, while secondary markets are where securities are bought and sold among investors.
• Primary markets are where securities are bought and sold among investors, while secondary markets are where new securities are issued for the first time.
• Primary markets are where new securities are issued for the first time, while secondary markets are where existing securities are bought and sold among investors.

Acts like a general partnership, but is clearly for a limited period of time or a single project.

• Joint Venture

• General Partnership
• Limited Liability Corporation (LLC)
• Limited Partnership (LP)

Partners divide responsibility for management and liability, as well as the shares of profit or loss according to their internal agreement. Equal shares are assumed unless there is a written agreement that states differently

• Limited liability company (LLC) ​

• Joint venture

• 
  Limited partnership and partnership with limited liability 

• General partnership 

This form of ownership is not often used for operating retail or service businesses. Forming this partnership is more complex and formal than that of a general partnership.​

• Unlimited Partnership

• 
  Sole Proprietorship

• 
  Limited Partnership

• Corporation

This is a relatively new type of hybrid business structure that is now permissible in most western countries. It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. 

• Sole Proprietorship
• Limited Liability Company (LLC)
• Corporation
• Limited Liability Partnership (LLP)

Owners of type of business are issued shares in that corporation and their liability is limited to the amount invested in the company to purchase those shares, for example, they have limited personal liability.

• LLC

• Corporation

• Partnership

• 
  Sole Proprietorship