Fi515 Week 1 Hw

Financial Management: Theory and Practice Mini discipline (p. 45) a. wherefore is corporate finance important to all autobuss? Since a managers primary job is to increase the play alongs intrinsic value, an understanding of corporate finance ordain alter a manager to better understand how their decisions shine the commodious picture. b.Describe the organizational forms a company might single out over as it evolves from a start-up to a major corporation. name 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 governing 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 vexation debts. 3. bearing of the backing is bound to the life span of its founder. A Partnership- which is a noncorporate business owned by two or more(prenominal) persons. Partnerships may operate under different degrees of formality. Advantages and losss argon more often than not 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 ar designated general partners and others limited partners. There are also limited liability partnerships. A corporation is a legal entity created under state laws, and it is divulge and distinct from its own ers and managers. Advantages 1. unlimited l! ife. It is not limited to the life of the founder, 2. dim 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 net income paid out as dividends are taxed as income to the stockholders. 2. orbital cavity up a corporation...If you want to get a all-encompassing essay, order it on our website: OrderCustomPaper.com

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