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