ECN 320 Chapter Notes - Chapter 1-4: Operating Cash Flow, Cash Flow, Sole Proprietorship

What is meant by working capital? Explain why working capital management is one of the most important activities of the financial manager.

Describe how each of the following differs concerning the three common forms of business ownership, (Sole Proprietorship, Partnership, and Incorporation):
Decision making
Raising money for start-up
Distribution of profits (or losses!)
Taxation

As distinguished from sole proprietorships and partnerships, why is the corporation type of legal organization so valuable to a firm? Is the corporation type of legal form a right or is it a privilege?