Chapter 1 Discussion Questions 1. What advantages does a sole proprietorship offer? What is a major drawback of this type of organization? A major drawback is that there is unlimited liability to the owner. The advantage is simplicity of decision making and low organizational and operating costs. 2. What form of partnership allows some of the investors to limit their liability? Explain briefly. It allows some of the partners to limit their liability. With this arrangement‚ the partners
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EXERCISE 18-1 (10-15 minutes) Add or deduct from accounting income (a) 2 deduct (b) 1 add (c) 3 add (d) 1 add (e) 2 deduct (f) 2 deduct (g) 1 add (h 3 deduct (i) 3 deduct (j) 1 add (k) 1 add (l) 1 add EXERCISE 18-3 (15-20 minutes) (a) Accounting income $105‚000 Permanent differences: Non-deductible fines 11‚000 116‚000 Timing differences: Excess of CCA over amortization (16‚000 ) Excess rent collected over rent earned 24‚000 Taxable income $124‚000
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Applications of option pricing in corporate finance Option pricing is used in four major areas of corporate finance: • Real Options Suppose a company has a 1-year proprietary license to develop a software application for use in a new generation of wireless cellular telephones. Hiring programmers and marketing consultants to complete the project will cost $30 million. The good news is that if consumers love the new cell phones‚ there will be a tremendous demand for the software. The bad news
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Chapter 1: #1 a) “Tired old town” (pg. 5) b) “Maycomb County had recently been told that it had nothing fear but fear itself” (pg. 6) c) “nothing to buy and no money to buy with it” (pg. 6) d) “nothing to see outside the boundaries of Maycomb County” (pg. 10) #2 The setting of the story take place in Maycomb County‚ Alabama‚ during the 1930’s. #3 Scout was telling the story about Boo Radley‚ she said Radley was locked up in a basement as a teenager for once getting in trouble
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Finance Unit 3 Assignment Answer 15 questions [All Answers must be submitted in the form at the end of this test. No Exception] 1. Based on the following data‚ would you recommend buying or renting? |Rental Costs |Buying Costs | |Annual rent‚ $7‚380 |Annual mortgage payments‚ $9‚800 ($9‚575 is interest) | |Insurance‚ $145 |Property taxes‚ $1‚780
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1. Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financial reserve. (3-6 sentences. 2.0 points) I put money into a financial reserve for college. I will not touch the money till then. I can add but not subtract from it. 2. How many months’ worth of expenses do you think your financial reserve should include? Describe at least two reasons for this decision. (3-6 sentences. 2.0 points) As many as I can have saved up into it
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APES Chapter Questions Living in the Environment‚ Miller‚ 15th Ediction Chapter 1: Environmental Problems‚ Their Causes & Sustainability 1. What is an environmentally sustainable society? Give 2 examples. 2. What is the rate of global population growth? 3. How do you calculate doubling time? 4. What is the difference between economic growth‚ economic development and environmentally sustainable development? 5. Define natural capital and natural capital degradation. Give
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Bond - is defined as a long-term debt of a firm or the government set forth in writing and made under seal. Kinds of Bond 1. Government Bonds - are those issued by the government to finance its activities. 2. Corporate Bonds - are those issued by private corporations to finance their long -term funding requirements. Bonds as Distinguished from Stocks 1. A bond is a debt instrument while stock is an instrument of ownership. 2. Bondholders have priority over stockholders when payments
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Chapter 1 Starting up a Proprietorship Proprietorship-an unincorporated business owned by one individual Easy to start Three advantages o Easily and inexpensively formed o Few government regulations o Its income is not subject to public taxation Three limitations o May be difficult for them to obtain capital needed for growth o Proprietor has unlimited personal liability o Life of a proprietorship is limited to the life of the founder Used primarily for small businesses Only account for
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• Chapter 8: I have decent background knowledge of the differences between Calvinists and Armminists‚ but this chapter changed my thinking. The previous discussions and literature I have experienced have made Calvinists out to be irrational. This chapter appropriately represented the supporting and objecting arguments to both viewpoints. I gained an understanding of why Calvinists believe what they do‚ and I can now look at Scripture and see where they are coming from. Their beliefs are not radical;
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