Questions from Financial Management

Q: How does the activity of investors in financial markets affect the decisions

How does the activity of investors in financial markets affect the decisions of executives within the firm?

Q: What are the significant financial advantages and disadvantages of the sole proprietorship

What are the significant financial advantages and disadvantages of the sole proprietorship/ partnership form in comparison with the corporate form?

Q: Is limited liability a meaningful concept? Why or why not?

Is limited liability a meaningful concept? Why or why not? And if so, for whom?

Q: Sussman Industries purchased a drilling machine for $50,000 and

Sussman Industries purchased a drilling machine for $50,000 and paid cash. Sussman expects to use the machine for 10 years after which it will have no value. It will be depreciated straight-line over...

Q: A company has been growing rapidly for the last three years.

A company has been growing rapidly for the last three years. It was profitable before the growth spurt started. Although this year's revenues are almost three times those of three years ago, the firm...

Q: Harvey Redmond is planning a new business that he expects will grow

Harvey Redmond is planning a new business that he expects will grow into a large company within a few years. Harvey’s lawyer has advised him that large companies are usually C-type corporations becaus...

Q: Jill Meier is the sole owner of Meier Corp., which provides

Jill Meier is the sole owner of Meier Corp., which provides her only source of income. Jill has always paid herself entirely by drawing dividends from her corporation. A friend suggested that as long...

Q: Heald and Swenson Inc purchased a drill press for $850,

Heald and Swenson Inc purchased a drill press for $850,000 one year and nine months ago. The asset has a six year life and has been depreciated according to the following accelerated schedule. The p...

Q: Fred Gowen opened Gowen Retail Sales as a sole proprietorship and recorded

Fred Gowen opened Gowen Retail Sales as a sole proprietorship and recorded the following transactions during his first month in business: 1. Purchased $50,000 of fixed assets, putting 10% down and bo...

Q: McFadden Corp. reports the following balances on their December 31,

McFadden Corp. reports the following balances on their December 31, 20X2 Balance Sheet:...