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Briefly define the terms proprietorship, partnership, and corporation.
Ans: The term proprietorship is used as a business owned by one person.
Two or more than two people who join together to form a business build up a partnership. This can be done on an informal basis with no a written partnership agreement, or a contract can spell out the rights and tasks of each partner.
A limited liability company is a hybrid among a corporation and a partnership. Profits and losses pass by to the members. Members usually enjoy limited liability.
Corporations are legal entities that are separate from their owners. To make a corporation, the owners specify the governing rules for the running of the business in a contract termed as the articles of incorporation. They submit the articles to the government of the state where the corporation is formed, and the state issues a charter which makes the separate legal entity.
Valuation of Share A number of parties are interested however in the value of shares and securities and that will include: Company shareholders, vendors and directors of
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Definition of 'Capital Budgeting': The process in which a business calculates whether projects such as building a new plant or investing in a long-term risk are worth pursuing
What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that exists between financial institutions and financial
Prudence buys a bond in EUR when it issued by the French government and inflation linked. It offers a 2% yearly coupon. She holds it for five years. Par value: EUR
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Question: a) A bank lends you $1750 at an initial nominal yearly interest rate of 7.5% compounded semi-annually. However, the interest rate will rise to 9.2% after the first
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Determine how much of a total loan payment applies towards principal and how much applies towards interest for a home mortgage of $177,219 with a fixed APR of 7.5% of 20 years
#The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.
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