this process the bank earns its profit. A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses. So bank is a very important part and identity of this whole transaction phenomenon. The TED Spread is the difference between the interest rates on interbank loans and on short-term U.S. government
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company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form Answer: The three main forms of business organization are (1) sole proprietorships, (2) partnerships, and (3) corporations. In addition, several hybrid forms are gaining popularity. These hybrid forms are the limited partnership, the limited liability partnership, the professional corporation, and the s corporation. The proprietorship has three important advantages: (1) it
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evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. The three main forms of business organization are 1- Sole proprietorships that has 3 advantages 1. It is easily and inexpensively formed 2. It is subject to few government regulations 3. The business pays no corporate income taxes. The proprietorship also has three important limitations: 1. It is difficult for a proprietorship to obtain large sums of capital 2. The proprietor has unlimited
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forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. There are three main forms of business organizations and forms. Sole Proprietorships are easy and inexpensive to form. They are also subject to very few government regulations and pay no corporate income taxes. However, it is difficult for sole proprietorships to obtain large sums of capital. The personal liability is also unlimited for the business debts.
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Disadvantages: difficult to acquire capital for growth, unlimited liability for debt on sole proprietor, life of proprietorship limited to founder’s lifespan 2) Partnership – more than one owner conduct noncorporate business together iii. Advantages: same as proprietorship iv. Disadvantages: same as proprietorship except that partners can lose all of their personal assets because each partner is responsible for business debt. 3) Corporation – many owners; a legal entity
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to liability and capital for making the business grow. Both parties are equally responsible for the debt of the business. These limited partnerships are either a LLP, which stands for limited liability partnership or the more common one a limited liability company, also known as LLC. c. A corporation is the last of the business forms. This is not as easy as the previous two. Corporations have to go through the state and adhere to the guidelines given to them. A corporation can keep living
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_______________________________________________ Abstract The need to encourage house or homeownership has been in the government’s strategic plan since 1934, however, the current financial policies and practices in the housing finance and the mortgage market has characterized by minimum flow of capital in the secondary mortgage market, confusion on the main control authority and various ill practices. This fact has necessitated various changes in the house and homeownership financial. This study collected both primary and secondary
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their company, and devise strategies for acquiring those funds. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Business Organization from Start-up to a Major Corporation: Sole proprietorship, Partnership and Corporation. Form of Business: Characteristics: Advantages: Disadvantages: Proprietorships Unincorporated business owned by one individual. • Easily and inexpensively formed
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able to maximize their shareholder wealth. * b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. A company may start out as a sole proprietorship or partnership and work its way towards becoming a corporation. * c. How do corporations go public and continue to grow? What are agency problems? What is corporate governance? Agency problems occur when managers act in a way that benefits
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Capital Market the market, or realistically, the group of interrelated markets, in which capital in financial form is lent or borrowed for medium and long term and, in cases such as equities, for unspecified periods. The capital markets, in distinction from other parts of the financial market ie, the money markets, are those for long-term government securities, corporate bonds, stocks, municipal bonds issued by state and local government units, and mortgages. industry and commerce as well as government
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