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Unformatted text preview: Mini Case a. Corporate finance provides the skills managers need to: (1) identify and select the corporate strategies and individual projects that add value to their firm; and (2) forecast the funding requirements of their company, and devise strategies for acquiring those funds. b. The three forms of business organization are sole proprietorships, partnerships, and corporations. The proprietorship has three major advantages: it is formed easily, less regulation, and no corporate income taxes. The proprietorship also has three major disadvantages: the unlimited personal liability for the businesss debts, normally limited capital, and the life of a business organized as a proprietorship is limited to the life of the individual who created it. The major advantage of a partnership is its low cost and ease of formation. The disadvantages are similar to those associated with proprietorships: unlimited liability, limited life of the company, transferring ownership is difficult.. . The corporate form of business has three major advantages: unlimited life, easy to transfer ownership, and most of all limited liability. transfer ownership, and most of all limited liability....
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- Spring '10