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Profit Margin

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Profit Margin
Chapter 1

The Goals and Functions of Financial Management

Discussion Questions

|1-1. |How did the recession of 2007–2009 compare with other recessions since the Great Depression in terms of length? |
| | |
| |It was the longest |
| | |
|1-2. |What effect did the recession of 2007–2009 have on government regulation? |
| | |
| |It was greatly increased. |
| | |
|1-3. |What advantages does a sole proprietorship offer? What is a major drawback of this type of organization? |
| | |
| |A sole proprietorship offers the advantage of simplicity of decision making and low organizational and operating costs. |
| |A major drawback is that there is unlimited liability to the owner. |
| | |
|1-4. |What form of
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