Financial Economics

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The organizational forms a company might have as it evolves from a start-up to a major corporation are: sole proprietorships, partnerships and corporations. The advantages of a sole proprietorship are that is is easily and inexpensively formed; is subject to few government regulations and it’s income is not

A) It is your responsibility to read the assignment carefully and make sure you understand what you need to do and what you should hand in. If you are not sure, check with

In response to the prompts below, refer to the assessments you will submit as part of the materials for Planning Task 1.

Once you have completed Part 2 of your Assessment, save the work you have done so far – you will need to send your work to your tutor for marking when you have completed all four Parts of this Assessment.

I think a partnership is the best business organization for a company. A Partnership consists of two or more individuals in business together. Normally, all general partners have an equal voice in management. Partnerships have many advantages, for example, Partnerships are relatively easy to form; No corporate income taxes. Partnerships declare income by filing a partnership income tax return. Yet the partnership pays no taxes when this partnership tax

2) Review your homework from Week 1. What progress did you make on your course

Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

- You may have a quiz the week you return to school on Assignment #1, #2 & #4

Decrease an asset and increase another asset. Credits decrease an asset and increase another asset.

Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts.

Type your answers on this form. Click “Save as” and save the file with the assignment name and your last name, e.g., “NR305_Milestone1_Form_Smith” When you are finished, submit the form to the Milestone #1 Dropbox by the deadline indicated in your guidelines. Post questions in the Q&A Forum or contact your instructor if you have questions about this assignment.

Write a response for each of the following activities. Check the Evaluation section at the end of this document to make sure you have met the expected criteria for the assignment. When you have finished, submit your work to

(5 points) In a world with no frictions (i.e., taxes, etc.), having debt is always better because it increases the value of the firm/projet.

Suppose South Australian consumers’ average incomes increase from $3,000 to $3,400 per month, which then results in an increase in the quantity of smartphones demanded from 15,000 to18,500. You are required to do the following: