Part A: Answer each of the following questions.
1. What are the main forms of business ownership in the United States? What are the advantages and disadvantages of using each type of ownership structure?
2. When managing a firm's balance sheet, finance managers must consider a number of issues that apply to items reported on the firm's balance sheet. What are three of these Issues?
3. When the prevailing interest rates in the economy rise, what happens to the price of bonds, and why does it happen?
4. At any given time, the market value of a stock depends on a variety of factors. What are two of these factors? What are two models used for valuing stocks?
5. What does modern portfolio theory show and what does it describe to achieve? What's the name of the portfolio used to achieve this goal?
6. How can financial managers minimize exchange rate risk to some extent?
7. Who are the monitors of managerial behavior outside a public firm, and how do they help the monitoring of managers?