Question: Define each of the following terms: a. Sole proprietorship; partnership; corporation b. Limited partnership; limited liability partnership; Professional Corporation c. Stockholder wealth maximization d. Money

Define each of the following terms:

a. Sole proprietorship; partnership; corporation

b. Limited partnership; limited liability partnership; Professional Corporation

c. Stockholder wealth maximization

d. Money market; capital market; primary market; secondary market

e. Private markets; public markets; derivatives

f. Investment banker; financial service corporation; financial intermediary

g. Mutual fund; money market fund

h. Physical location exchanges; computer/telephone network

i. Open outcry auction; dealer market; electronic communications network (ECN)

j. Production opportunities; time preferences for consumption

k. Real risk-free rate of interest, r*; nominal risk-free rate of interest, rRF

l. Inflation premium (IP); default risk premium (DRP); liquidity; liquidity premium (LP)

m. Interest rate risk; maturity risk premium (MRP); reinvestment rate risk

n. Term structure of interest rates; yield curve

o. “Normal” yield curve; inverted (“abnormal”) yield curve

p. Expectations theory

q. Foreign trade deficit

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