Finance de La Torre

De la Torre a) Why is corporate finance important to every last(predicate) managers? * It is important for the decisions taken in the company, investment decisions and financing decisions. * both decision taken in the company has a fiscal impact. * Investment projects, how much to invest and what assets to invest. * To raise the necessary hard currency * To increase the servingholders stake in the mansion. b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the favors and disadvantages of each form. Sole Proprietorship. Sole possessor of a business. The manager and the owner is the same person. The sole proprietary has un throttle liability. You pay taxes as owner and for the business ones. The advantage is the ease with which it can be establish and the lack of edict s governing it. Partnership. line of descent owned by cardinal or more persons who are personal responsible for on the whole its liabilities. The partners pay personal income tax on their share of these profits. severally partner has unlimited liabilities for all the businesss debts. Corporations. Business owned by stockholders who are non personally conjectural for the businesss liabilities. A corporation is legally apparent from its owners.

A corporation pays taxes on its own. It is owned by stockholders and it has limited liability. There is a separation between owners and managers; they are not the same person. c) How do corporations go public and continue to put up? What are agency problems? What is corporate governance? As a firm grows, it needs more capital. The firm finds out that its advantageous to raise funds directly from investors. This is when the firm is wangle to sell new financial assets, such as share of stocks, to the public. Agency problems are the conflict of interest between the firms owner and the managers. Corporate governance is the set of processes, customs, policies, laws, and institutions bear on the way a... If you want to get a full essay, ready it on our website: Orderessay

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