FIN 401 Study Guide - Final Guide: Sole Proprietorship, Sunk Costs, Real Estate Investment Trust
24 Feb 2018
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1 (cid:4666)(cid:3019)(cid:3016) (cid:3051) (cid:4666)1 (cid:3005)(cid:3017)(cid:4667)(cid:4667) (cid:2175)(cid:2203)(cid:2201)(cid:2202)(cid:2183)(cid:2191)(cid:2196)(cid:2183)(cid:2184)(cid:2194)(cid:2187) (cid:2163)(cid:2200)(cid:2197)(cid:2205)(cid:2202)(cid:2190) (cid:2174)(cid:2183)(cid:2202)(cid:2187) (cid:4666)(cid:2175)(cid:2163)(cid:2174)(cid:4667)= (cid:3019)(cid:3016)(cid:3006) (cid:3051) (cid:4666)1 (cid:3005)(cid:3017)(cid:4667) Sole proprietorship owned and run by one person. Partnership owned by more than one owner. Partnership income split among partners and taxed at personal level. There are two types: limited (limited liabilities) and general (unlimited liabilities) The ownership of corporation is divided into stocks. Real estate income trust (reit) a special type of corporation that pays no tax in order to promote investment in real estate. Market value is the opportunity cost of keeping the asset. Book value is the sunk cost of the asset. Liquidity ratios indicates how the firm"s ability to meet its short term financial obligations. Asset efficiency ratios indicate how efficiently the firm uses its assets to produce revenue. Financial leverage ratios indicate the extent to which the firm relies on debt financing and the firm"s ability to service this debt.
