Fi515 Mini Case

Mini Case a. Why is corporate finance necessary to all autobuss? Corporate finance is important to managers because managers of a involution must know the finance of a association which is pursue to help managers to know the health of the conjunction and can atom accordingly with a common guideline. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Sole Proprietor, Partnership, and Corporation atomic number 18 the three types of companies. With the first it is the owners company solely but argon hard to start because of capital. The second is a partnership and 2 or more people go into start a company assuming all risks equally. Lastly, a corporation has stakeholders who mail in the company to keep them running. c. How do corporations go public and affect to grow? What are agency problems? What is corporate geological formation? Corporatio ns go public by selling stock to stakeholders and if the company has an interesting product or service it will have-to doe with to grow will the shareholders. Agency problems are when companies dont keep the interests of the stakeholders in mind when making decisions. Corporate garbage disposal is the way a corporation protects the interests of its shareholders and other financiers. d.

What should be the first-string objective of managers? The primary objective of a finance manager is to maximize the investors wealth. (1) Do firms have any responsibilities to society at large? Yes companies do have respons ibilities (ie. Social responsibilities) and ! should be taken very seriously because some stakeholders invest in companies by how a company handles these responsibilities. (2) Is stock price maximization true(p) or bad for society? it probably would be superb for society, as there are many share holders whos risk would subjoin in value, meaning some would sell shares, gum olibanum creating economic activity. (3) Should firms behave ethically? Firms should...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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