Answer the following Questions

1.Differentiate between Sole Proprietorship and Partnership. Discuss advantages and disadvantages of Sole Proprietorship and Partnership.

2.Discuss corporation in detail (definition, types, advantages and disadvantages).

3.What does working capital management encompass? What functional decisions are involved, and what underlying principle or trade-off inuences the decision process?

4.A rm is currently employing an "aggressive" working capital policy with regard to the level of current assets it maintains (relatively low levels of current assets for each possible level of output). The rm has decided to switch to a more "conservative" working capital policy. What effect will this decision probably have on the rm's protability and risk?

5.Dene the function of cash management.

6.Explain how the lockbox system can improve the efciency of cash management.

7.Define marketable securities. How cash and marketable securities are maintained and managed to meet the current requirements.

8.Explain the process of cash receipts and payments. How the process of payments can be slow down.

9.Compare and contrast electronic commerce (EC), electronic data interchange (EDI), electronic funds transfer (EFT), and nancial EDI (FEDI).

10.What is the purpose of establishing a line of credit for an account? What are the benets of this arrangement?

11.Explain how efcient inventory management affects the liquidity and protability of the rm.

12.How can the rm reduce its investment in inventories? What costs might the rm incur from a policy of very low inventory investment?