Answer the questions in your own words. What advantages do sole proprietorships and partnerships offer? What is...

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Finance

Answer the questions in your own words.
What advantages do sole proprietorships and partnerships offer?What is a major drawback of these types of organization? (10points)
In a corporate governance, what group has the ultimateresponsibility for monitoring management and protecting thestockholders' interests? Who elects this group? (10 points)
What is meant by maximizing owner’s equity value (shareholderwealth)? Why are maximizing just net income, or just profit,inappropriate goals? (10 points)
List and describe the four major financial statements. (20points)
Why do financial managers and investors find cash flows to bemore important than accounting profit? (10 points)
What information does time series analysis provide for firmmanagers, analysts, and investors? (10 points)
Define the following ratios and explain their significance. (30points)
Quick ratio
Average collection period
Return on equity
Debt ratio
Profit margin

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3.9 Ratings (454 Votes)

1 Sole proprietorship Advantages it is easy to form and dissolve as registration of the organisation is not required decision making is simpler because there is only one person running the business organisation business and the owner are one entity Disadvantages there is unlimited liability on part of the owner ie sole proprietor the life of the business is limited and so are the resources it is normally on small scale Partnership Advantages business and the owner are two separate entities there is limited liability on the shoulders of the partners easy formation Requirement of registration depends on the type pf the partnership See Answer

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Answer the questions in your own words.What advantages do sole proprietorships and partnerships offer?What is a major drawback of these types of organization? (10points)In a corporate governance, what group has the ultimateresponsibility for monitoring management and protecting thestockholders' interests? Who elects this group? (10 points)What is meant by maximizing owner’s equity value (shareholderwealth)? Why are maximizing just net income, or just profit,inappropriate goals? (10 points)List and describe the four major financial statements. (20points)Why do financial managers and investors find cash flows to bemore important than accounting profit? (10 points)What information does time series analysis provide for firmmanagers, analysts, and investors? (10 points)Define the following ratios and explain their significance. (30points)Quick ratioAverage collection periodReturn on equityDebt ratioProfit margin