FI515_Homework - FI515_Homework1_Alyssa Davis Mini Case...

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FI515_Homework1_Alyssa Davis Mini Case (pg. 45) a) Corporate finance is important to all managers because managers should understand and know the financial state of the company they are working for. Managers have a responsibility to capitalize on the value of a company for the shareholders of an organization. The decisions that will be made on a regular basis are all affected by this current financial state of a corporation. And if the managers don’t know this information then they cannot move forward. b. First, it might start as a sole partnership company and therefore is easy to create and inexpensive. Disadvantages are that it as limited funding and growth opportunities and the owner takes all responsibility. Second, might turn into a partnership and contains more flexibility. Disadvantages are that they are subject to more taxes and they back their company with their personal assets. Next, would be a real corporation with many owners. This helps companies expand and get capital funding. It is easier to keep corporations alive. Disadvantages are that there could be
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This note was uploaded on 03/05/2012 for the course FINANCE F1515 taught by Professor Herrick during the Spring '12 term at Keller Graduate School of Management.

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FI515_Homework - FI515_Homework1_Alyssa Davis Mini Case...

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