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Unit I Short Answers

1.  Discuss three main organizational forms used in forming a business.

2.  Explain what a firm’s goal is from both a shareholder and stakeholder approach.

3.  Distinguish between equity and debt securities and how they are used to raise capital.

4.  Discuss why cash flows are important in finance.

5.  Summarize how cash flows generate value. Give some examples.  The response for each question should be at least 75 words in length.

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