Academy of Finance Review Part 2

Set of values concerning right and wrong in a business context

Which is a disadvantage of a sole proprietorship?

A type of business ownership where the business is owned by a single person

A person who investigates, evaluates, coordinates and settles property and bodily injury claims

An investment into a collection of stocks, bonds, and/or other securities

A measure of an investor’s ability to cope with the value of their portfolio going up and down.

A person responsible for keeping track of financial records or documents.

Risk revolving around the soundness of the business you're investing in

Business owned by its stockholders (shareholders) who share in profits and losses

A business owned by two or more people.

Person who works with an estate owner to create a plan that meets the owner’s goals after death

Risks involved w/ investing internationally (currency, politics, laws)

Which is an advantage of a partnership?

A person who processes financial transactions for an organization

Which is an advantage for corporations?

How easily an investment can be bought and sold and/or exchanged for cash

Corporate officer responsible for overseeing/managing financial activities/policies of company

A person who offers advice to consumers on repaying or eliminating debt.

General rise in prices of in an economy > decline in real value of $ (loss of purchasing power)

Stocks are the riskiest investment option

Mutual funds are loans that investors make to corporations or gov'ts.

If something is legal, then it is ethical

The risk that interest rates will change.

Risk that investment value will decrease from market changes (interest rates, stock prices)

When you purchase stock, you own part of the company. Stock price tied to the company's value

Good way to reduce investment risks is to spread $ among different investments, called _.

Studies companies and makes buy and sell recommendations