Fin 370 finance for business week 1 dq

List the three main forms of business organization and describe their advantages and disadvantages. If you were to consider starting up a lawn-care business for the summer, what type of business organization might you use?

(Related to The Business of Life: Controlling Costs in Mutual Funds on page 24) In The Business of Life: Controlling Costs in Mutual Funds feature, the importance of keeping expenses down is discussed. The Financial Industry Regulatory Authority website provides an easy way to compare two mutual funds. Go to the website,, then enter Vanguard 500 Index Fund Investor Class (you will enter the ticker symbol VFINX), American Beacon Balanced Fund Class A (ABFAX), and Quantitative Futures Strategy Fund Class C Shares (QMFCX). Now, click on “show results.” Set your investment at $10,000, your return at 8%, and your period at 10 years. What is your profit or loss? Why do you think there is such a big difference? (Think expenses and fees.)

The cash flow statement is one of the four basic financial statements. Define the objective in preparing this statement and discuss some of the types of questions that can be addressed using its content.

(Related to Finance in a Flat World on page 103) In the Finance in a Flat World box, we note that differences in accounting standards around the world can influence financial ratios. Describe how differences in the way that goodwill is treated in the United States versus Hong Kong might influence financial ratio comparisons between companies in each country.

Never Run Out of Cash

Watch the “Never Run Out of Cash” video.  

Answer the following questions by clicking Reply:  

  • What was the most relevant part of this video?
  • How can you use this information in your career?
  • What parts of the video (if any) were difficult for you to understand? 
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