Fi515 Week 1 Hw

Financial Management: Theory and Practice Mini flake (p. 45) a. wherefore is corporate finance important to all autobuss? Since a managers primary job is to increase the gilds intrinsic value, an understanding of corporate finance exit alter a manager to better understand how their decisions concern the commodious picture. b.Describe the organizational forms a company might secern over as it evolves from a start-up to a major corporation. dip the advantages and injustices of each form. A proprietorship, which is an unincorporated backing owned by champion individual. Advantages- 1. It is easily and inexpensively formed, 2. it is subject to fewer government regulations. 3. its income is not subject to corporate taxation. Disadvantages- 1. Capital for growth whitethorn be difficult to obtain. 2. un control personal liability for the problem debts. 3. bearing of the billet is especial(a) to the life span of its founder. A Partnership- which is a noncor porate business owned by two or more(prenominal) persons. Partnerships may operate under different degrees of formality. Advantages and injustices argon loosely the same as a proprietorship. A major disadvantage is that a partner may be held responsible for the business debts even if the other partner is bankrupt.

To avoid this there be limited partnerships where in certain partners atomic number 18 designated general partners and others limited partners. There ar also limited liability partnerships. A corporation is a legal entity created under state laws, and it is let out and distinct from its owners a nd managers. Advantages 1. unlimited life. ! It is not limited to the life of the founder, 2. dimmed transferability of ownership-ownership interest are divided into shares of stock. 3. limited liability- losses are limited to the actual funds invested. Disadvantages 1. Double taxation-corporate sugar are taxed at a corporate level and then honorarium paid out as dividends are taxed as income to the stockholders. 2. ambit up a corporation...If you want to get a panoptical essay, order it on our website: OrderCustomPaper.com

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