Week 1 Managerial Finance

Week 1 Managerial Finance - Assignment Week 1 CHAPTER ONE...

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Assignment Week 1 CHAPTER ONE 1) Financial Decisions: Investment decisions – The financial manager has to help identify investment opportunities. Which companies should the corporation invest in which will bring in a great return? How much should we invest in these companies? Those are the investment decisions that the financial manager is involved in making. Financial decisions – The financial manager’s other responsibility which is how to raise the money which is needed in order to invest. Basically, it’s how to raise capital. 2) Corporations: Corporations are distinct, permanent entities. The stockholders are the owners. Owners cannot be personally help responsible for the corporations depts. Sole Proprietorship – You are held personally responsible for your company and all of its depts. Public Corporation – Large, public corporations have thousands of shareholders. Private Corporation – Usually mom and pop stores, small, or medium size corporations that are not publicly traded. 3) Corporations: Corporations can live forever. Separation of owners and managers means permanence to a corporation. If a manager is fired, they are replaced by another manager, and it really does not hard the corporation. 4) Limited Liability: Limited Liability is when the owners of large corporations are not legally held responsible for the corporations depts. 5) Corporations: Corporations are taxed on their profits and then shareholders are taxed again when they receive their dividends or share their stock for a profit.
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Week 1 Managerial Finance - Assignment Week 1 CHAPTER ONE...

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