Question

read chapter 1 from Corporate Finance customized ehrhardt & brigham 6th edition book and answer all the question.

1-1 Define each of the following terms:
a. Proprietorship; partnership; corporation; charter; bylaws

b. Limited partnership; limited liability partnership; professional corporation

c. Stockholder wealth maximization

d. Money market; capital market; primary market; secondary market

e. Private markets; public markets; derivatives
f. Investment bank; financial services corporation; financial intermediary

g. Mutual fund; money market fund

h. Physical location exchange; computer/telephone network
i. Open outcry auction; dealer market; automated trading platform
j. Production opportunities; time preferences for consumption k. Foreign trade deficit

1-2 What is a firm’s fundamental value (which is also called its intrinsic value)? What might cause a firm’s intrinsic value to be different from its actual market value?

1-3 What are some similarities and differences between the NYSE and the NASDAQ Stock Market?

Answer 1

As per rules I am answering the first 4 subparts of the question

1: Proprietorship: This is a business owned and managed by a single owner.

2: partnership: Partnership is an arrangement between two or more people to conduct business operations jointly and to share the profits and losses of the same.

3:Corporation is a company instituted as such which is authorized to act as a separate legal entity.

4: Charter is a formal document which details the rights, duties, role and responsibilities as well as principles of an organization or group of people