Flashcard: Fundamentals of Corporate Financial Structure — 9 carte

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1Domanda

Corporate ownership — definition?

Risposta

Ownership represented by shares of stock.

2Domanda

Corporation — legal entity?

Risposta

Recognized as separate from owners.

3Domanda

Balance sheet — structure?

Risposta

Assets equal liabilities plus equity.

4Domanda

Limited liability — owners?

Risposta

Not personally responsible for debts.

5Domanda

Shares of stock — role?

Risposta

Represent ownership in a company.

6Domanda

Equity value — composed of?

Risposta

Sum of all shareholders' shares.

7Domanda

Unlimited shareholders — advantage?

Risposta

Enables raising substantial funds.

8Domanda

Balance sheet — assets?

Risposta

Represent resources owned by a company.

9Domanda

Balance sheet — liabilities plus equity?

Risposta

Claims against resources at a point.

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1. How can a corporation practically utilize its ownership structure to support its growth?

2. What is one primary function of a corporation's shares of stock as outlined in the course outline?

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