Chapter 1 - CHAPTER 1 Introduction to Financial Management...

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Unformatted text preview: CHAPTER 1 Introduction to Financial Management Forms of Businesses Goals of the Corporation Responsibility of Financial Staff 11 Proprietorships & Partnerships Advantages Disadvantages Ease of formation Subject to few regulations No corporate income taxes Difficult to raise capital Unlimited liability Limited life 12 Corporation Advantages Disadvantages Unlimited life Easy transfer of ownership Limited liability Ease of raising capital Double taxation Cost of setup and report filing 13 Financial Goals of the Corporation The primary financial goal is shareholder wealth maximization, which translates to maximizing stock price. 14 ...
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Chapter 1 - CHAPTER 1 Introduction to Financial Management...

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