Question 1: Part A: Financial Management

(a) Which business form has the following characteristics:

• Separate legal entity
• Liability of investors limited to amount of investment
• Allows separation of ownership and day-to-day management
• Taxed as a separate entity

		Trust
		Corporation
		Sole Trader
		Partnership

(b) If you buy shares of Coca-Cola on the secondary market,

		You buy the shares from the Federal Reserve.
		You buy the shares from another investor who decided to sell the shares.
		Coca-Cola receives the money because the company has issued new shares.
		You buy the shares from the New York Stock Exchange.

(c) Jennifer is your oldest child. Tomorrow is her 6th birthday. You plan to set up a savings plan for Jennifer's university education. You will deposit $4,000, tomorrow and every year up to and including her 17th birthday. How much will be available to Jennifer on her 18th birthday? Assume the relevant interest rate is 3.3% per year. Write your answer to the nearest cent.