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Corporate Finance Foundations Global Edition Solution Manual

Corporate Finance Foundations Global Edition Solution Manual makes textbook problem-solving easy with a comprehensive guide that explains every step.

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Chapter 01-The Goals and Activities of Financial Management1-1Chapter 1The Goals and Activities of Financial ManagementDiscussion Questions1-1.How did the recession of 2007–2009 compare with other recessions since theGreatDepression in terms of length?It was the longest.1-2.What effect did the recession of 2007–2009 have on government regulation?It was greatly increased.1-3.What advantages does a sole proprietorship offer? What is a major drawback ofthis type of organization?A sole proprietorship offers the advantage of simplicity of decision making andlow organizational and operating costs. A major drawback is that there isunlimited liability to the owner.1-4.What form of partnership allows some of the investors to limit their liability?Explain briefly.A limited partnership allows some of the partners to limit their liability. Underthis arrangement, one or more partners are designated general partners and haveunlimited liability for the debts of the firm; other partners are designated limitedpartners and are liable only for their initial contribution. The limited partners arenormally prohibited from being active in the management of the firm.1-5.In a corporation, what group has the ultimate responsibility for protecting andmanaging the stockholders' interests?The board of directors.1-6.What document is necessary to form a corporation?The articles of incorporation.

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Corporate Finance Foundations by Ge...

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