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Match the terms relating to the basic terminology and concepts of corporate finance on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. There is only one possible answer for each term.

| Term | Answer | Description |
|---------------------------|--------|-------------|
| Limited liability | | This benefit is conferred by the corporate form of organization in which an investor's personal responsibility for the debts of the business is limited to the amount the investor has invested in the firm. |
| Finance | | It addresses how financial resources are obtained, allocated, and managed by a person, a business organization, or a governmental entity. |
| Corporation | | This state-created entity is authorized to conduct business and offer its owners an investment with an unlimited life. |
| Treasurer | | This position and title is held by the individual responsible for planning and managing how the firm is financed, when its funds are raised, and how its risks are managed. |
| Business ethics | | This is a company's attitude and standards of conduct toward its stakeholders, including its customers, stockholders, creditors, employees, suppliers, management, and the community. |
| Limited partner | | This is a participant in a partnership, whose personal assets may not be seized to satisfy the debts of the partnership. |
| Double taxation of dividends | | This is a disadvantage of the corporate organization since it requires taxes to be levied on both the income of the firm and the dividend income earned by its shareholders. |
| Stakeholder | | This general term is given to an individual or a group that has an interest in, or is affected by, a business. |
| Value | | This is the worth of a good or service as established by the discounted and current value of the item's cash flows. |
| Shareholder wealth maximization | | This primary goal of financial management is evaluated by the effect of a decision or an action on the value of the firm. |

Answer :

Here are the matches for the terms relating to the basic terminology and concepts of corporate finance:

A. Corporation - This state-created entity is authorized to conduct business and offer its owners an investment with an unlimited life.

B. Value - This is the worth of a good or service as established by the discounted and current value of the item's cash flows.

C. Treasurer - This position and title is held by the individual responsible for planning and managing how the firm is financed, when its funds are raised, and how its risks are managed.

D. Limited liability - This benefit is conferred by the corporate form of organization in which an investor's personal responsibility for the debts of the business is limited to the amount the investor has invested in the firm.

E. Limited partner - This is a participant in a partnership, whose personal assets may not be seized to satisfy the debts of the partnership.

F. Double taxation of dividends - This is a disadvantage of the corporate organization since it requires taxes to be levied on both the income of the firm and the dividend income earned by its shareholders.

G. Shareholder wealth maximization - This primary goal of financial management is evaluated by the effect of a decision or an action on the value of the firm.

H. Stakeholder - This is a company's attitude and standards of conduct toward its stakeholders, including its customers, stockholders, creditors, employees, suppliers, management, and the community.

I. Business ethics - It addresses how financial resources are obtained, allocated, and managed by a person, a business organization, or a governmental entity.

J. Finance - Finance refers to the general field and discipline that encompasses the concepts and activities related to managing money, investments, and financial resources.

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Answer:

1. Limited liability

2. Value

3. Stakeholder

4. Treasurer

5. Business ethics

6. Limited partner

7. Corporation

8. Double taxation of dividend

9. Finance

10. Shareholder wealth maximization

Explanation:

1. Limited liability: This benefit is conferred by the corporate form of organization in which an investor's personal responsibility for the debts of the business are limited to the amount the investor has invested in the firm.

2. Value: This is the worth of a good or service as established by the discounted and current value of the item's cash flows.

3. Stakeholder: This general term is given to an individual or a group that has an interest in, or is affected by, a business.

4. Treasurer: This position and title is held by the individual responsible for planning and managing how the firm is financed, when its funds are raised, and how its risks are managed.

5. Business ethics: This is a company's attitude and standards of conduct toward its stakeholders, including its customers, stockholders, creditors, employees, suppliers, management, and the community.

6. Limited partner: This is a participant in a partnership, whose personal assets may not be seized to satisfy the debts of the partnership.

7. Corporation: This state-created entity is authorized to conduct business and offer its owners an investment with an unlimited life.

8. Double taxation of dividend: This is a disadvantage of the corporate organization since it requires taxes to be levied on both the income of the firm and the dividend income earned by its shareholders.

9. Finance: It addresses how financial resources are obtained, allocated, and managed by a person, a business organization, or a governmental entity.

10. Shareholder wealth maximization: This primary goal of financial management is evaluated by the effect of a decision or an action on the value of the firm.