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Questions and Answers
What are the main elements that affect the values of future cashflows in finance?
What are the main elements that affect the values of future cashflows in finance?
- Real investment, financing, taxation, business structures, advantages
- Investments, liquidity, working capital, intermediaries, markets
- Time, money, information, uncertainty/risk, taxation (correct)
- Government, corporate finance, shareholders, debt capital, gilts
Which perspective in finance involves real investment, capital budgeting, and liquidity/working capital management?
Which perspective in finance involves real investment, capital budgeting, and liquidity/working capital management?
- Government
- Corporate finance (correct)
- Investments
- Financial intermediaries and markets
What is a characteristic of a PLC (Public Limited Company) in terms of shareholder liability?
What is a characteristic of a PLC (Public Limited Company) in terms of shareholder liability?
- Unlimited liability, liable for all company debts
- Variable liability, dependent on annual profits
- Shared liability, liable based on ownership percentage
- Limited liability, the most they can lose is the money they invested (correct)
What is a disadvantage of unincorporated business structures like sole traders and partnerships?
What is a disadvantage of unincorporated business structures like sole traders and partnerships?
Which element is characteristic of debt capital in a company's financing?
Which element is characteristic of debt capital in a company's financing?
What is the primary purpose of a stock exchange's secondary market?
What is the primary purpose of a stock exchange's secondary market?
What is the main advantage of a company issuing new shares in the primary market through an IPO?
What is the main advantage of a company issuing new shares in the primary market through an IPO?
Why do some investors sell shares in the secondary market based on information motivation?
Why do some investors sell shares in the secondary market based on information motivation?
What is a major disadvantage of establishing a corporation in terms of tax implications?
What is a major disadvantage of establishing a corporation in terms of tax implications?
In the context of financial intermediaries and markets, what is the primary function of money and capital markets?
In the context of financial intermediaries and markets, what is the primary function of money and capital markets?
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