1. What are the four major types of firm in the U.S, how are they defined, and what are the key differences between them?
2. How can corporate bankruptcy be viewed as a change in firm ownership? Describe why a corporation would want to file for bankruptcy as well as the benefits and drawbacks of such a decision.
3. List the four major financial statements required by the SEC for publicly traded firms, define each and explain why they are valuable.
4. Define what is included in a management discussion and analysis section of a financial statement (that cannot be found elsewhere).
5. Explain how they are useful tools in assessing firm performance and then give your own assessment of Microsoft's performance for the most recent year.
   • debt-equity ratio,
   • enterprise value,
   • earnings per share,
   • operating margin, net profit margin,
   • accounts receivable days, accounts payable days, inventory days interest coverage ratio,
   • return on equity,
   • return on assets, price-earnings ratio, market-to-book ratio
6. Discuss the Sarbanes-Oxley Act in wake of the financial reporting misdeeds of Enron and WorldCom. Compare and contrast the two companies, discuss what led to the fraud being discovered, and describe how policies have changed for companies today. You can use examples of other companies to help in your discussion.