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**Answer the following questions. **

Copy and paste the following questions into a Microsoft Word document. Answer each question with a minimum of two to three (2-3) sentences. Some questions will require substantially more than that to respond fully to the prompt. Be thorough when addressing each item and make sure you answer each part of the prompt. Answer the questions in your own words.

What advantages do sole proprietorships and partnerships offer? What is a major drawback of these types of organizations?
In corporate governance, what group has the ultimate responsibility for monitoring management and protecting the stockholders’ interests?  Who elects this group?
What is meant by maximizing the owners equity value (shareholder wealth)? Why are maximizing just net income, or just profit, inappropriate goals?
List and describe the four major financial statements, including their timeframes.
Why do financial managers and investors find cash flows to be more important than accounting profit?
What information does time series analysis provide for firm managers, analysts, and investors?
Define the following ratios, show the equation, and explain their significance.
Quick ratio
Average collection period
Return on equity
Debt ratio
Profit margin
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