finance chapter 1
Corporation
C-Corporation S-Corporation Limited Liability Company (LLC)
Partnership
General Limited
Working Capital Management
How do we manage the day-to-day finances of the firm?
Capital Structure
How should we pay for our assets? Debt or equity?
What should be the goal of a corporation?
Maximize the current value of the company's stock?
Treasurer:
Oversees cash management, credit management, capital expenditures, and financial planning
Controller
Oversees taxes, cost accounting, financial accounting, and data processing
Sole Proprietorship
Single owner
Questions financial managers need answered:
What long-term investment should the firm make? Where will we get the long-term financing to pay for the investment? How will we manage the day-to-day financial activities of the firm?
Capital Budgeting
What long-term investments or projects should the firm take on?
Which one of the following is an unintended result of the Sarbanes-Oxley Act?
corporations delisting from major exchanges
Which of the following are results related to the enactment of the Sarbanes-Oxley Act of 2002?
increased foreign stock exchange listings of U.S. stocks increased privatization of public corporations
Chief Financial Officer (CFO):
top financial manager within the firm