Soru
1. How might agency problems arise in partnerphips? 2. What are the three forms of business organization? Briefly explain. 3. What are the three types of financial management decisions and what questions are they designed to answer? 4. From a liability point of view, what is the difference;between investing in a sole proprietorship and a general partnership? 5. What is the difference between a marginal and an average tax rate?
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1. **Agency Problems in Partnerships:** - **Conflict of Interest:** One partner may prioritize their own interests over the partnership's success. - **Lack of Accountability:** Partners may not hold each other accountable for poor performance or decisions. - **Unequal Contribution:** Disparities in effort or investment among partners can lead to dissatisfaction and conflict.2. **Three Forms of Business Organization:** - **Sole Proprietorship:** Owned and operated by one individual. It is the simplest form but comes with unlimited liability. - **Partnership:** Two or more individuals share ownership and management. Liability is shared among partners. - **Corporation:** A legal entity separate from its owners (shareholders). It offers limited liability protection but involves more regulatory requirements and complexity.3. **Three Types of Financial Management Decisions:** - **Working Capital Management:** Focuses on managing short-term assets and liabilities to ensure smooth operations. Questions: How much working capital is needed? How can it be optimized? - **Investment Decisions:** Concerned with long-term investments in assets like machinery, equipment, or securities. Questions: Which projects or investments should be undertaken? How will they generate returns? - **Financing Decisions:** Deals with how to finance the company's assets and operations. Questions: Should the company use debt or equity financing? What is the optimal capital structure?4. **Liability Differences:** - **Sole Proprietorship:** The owner has unlimited liability, meaning personal assets are at risk if the business incurs debt or liabilities. - **General Partnership:** All partners share unlimited liability, and personal assets are at risk collectively. - **Limited Liability:** Found in corporations and limited partnerships, where owners' personal assets are protected from business liabilities.5. **Marginal vs. Average Tax Rate:** - **Marginal Tax Rate:** The rate applied to the last dollar of taxable income. It determines the tax rate for the next dollar earned. - **Average Tax Rate:** The total tax paid divided by total taxable income. It shows the overall percentage of income paid in taxes.