Garantie de satisfaction à 100% Disponible immédiatement après paiement En ligne et en PDF Tu n'es attaché à rien
Recherché précédemment par vous
SOLUTION MANUAL for Foundations of Financial Management, 18th Edition by Stanley Block, Geoffrey Hirt, Chapters 1 – 21, Complete$12.49
Ajouter au panier
SOLUTION MANUAL for Foundations of Financial Management, 18th Edition by Stanley Block, Geoffrey Hirt, Chapters 1 – 21, Complete
4 vues 0 fois vendu
Cours
Foundations of Financial Management
Établissement
Foundations Of Financial Management
SOLUTION MANUAL for Foundations of Financial Management,
18th Edition by Stanley Block, Geoffrey Hirt,
Chapters 1 – 21, Complete
SOLUTION MANUAL for Foundations of Financial Management,
18th Edition by Stanley Block, Geoffrey Hirt,
Chapters 1 – 21, Complete
SOLUTION MANUAL for Foundatio...
SOLUTION MANUAL for Foundations of Financial Management,
IIll IIll IIll IIll IIll IIll
18th Edition by Stanley Block, Geoffrey Hirt,
IIll IIll IIll IIll IIll IIll IIll
Chapters 1 – 21, Complete IIll IIll IIll IIll
,
, Chapter 1 IIl
The Goals and Functions of Financial Management
IIll IIll IIll IIll IIll IIll
Discussion Questions IIll
1-1 What effect did the recession of 2007-2009 have on government regulation?
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
It was greatly increased.
IIll IIll IIll
1-2 What advantages does a sole proprietorship offer? What is a major drawback of this
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
type of organization?
IIll IIll IIll
A sole proprietorship offers the advantage of simplicity of decision making and low
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
organizational and operating costs. A major drawback is that there is unlimited liability
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
to the owner.
IIll IIll IIll
1-3 What form of partnership allows some of the investors to limit their liability?
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
Explain briefly.
IIll IIll
A limited partnership allows some of the partners to limit their liability. Under this
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
arrangement, one or more partners are designated general partners and have
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
unlimited liability for the debts of the firm; other partners are designated limited
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
partners and are liable only for their initial contribution. The limited partners are
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
normally prohibited from being active in the management of the firm.
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
1-4 In a corporation, what group has the ultimate responsibility for protecting and
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
managing the stockholders’ interests?
IIll IIll IIll IIll
The board of directors.
IIll IIll IIll
1-5 What document is necessary to form a corporation?
IIll IIll IIll IIll IIll IIll IIll
The articles of incorporation.
IIll IIll IIll
1-6 What issue does agency theory examine? Why is it important in a public
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
corporation rather than in a private corporation?
IIll IIll IIll IIll IIll IIll IIll
, Agency theory examines the relationship between the owners of the firm and the
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
managers of the firm. In privately owned firms, management and the owners are
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
usually the same people. Management operates the firm to satisfy its own goals, needs,
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
financial requirements and the like. As a company moves from private to public
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
ownership, management now represents all owners. This places management in the
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
agency position of making decisions in the best interest of all shareholders.
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
1-7 What are institutional investors important in today’s business world?
IIll IIll IIll IIll IIll IIll IIll IIll
Because institutional investors such as pension funds and mutual funds own a large
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
percentage of major U.S. companies, they are having more to say about the way
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
publicly owned companies are managed. As a group, they have the ability to vote
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
large blocks of shares for the election of a board of directors, which is supposed to run
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
the company in an efficient, competitive manner. The threat of being able to replace
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
poor performing boards of directors makes institutional investors quite influential.
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
Since these institutions, like pension funds and mutual funds, represent individual
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
workers and investors, they have a responsibility to see that the firm is managed in an
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
efficient and ethical way.
IIll IIll IIll IIll
1-8 Why is profit maximization, by itself, an inappropriate goal? What is meant by the
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
goal of maximization of shareholder wealth?
IIll IIll IIll IIll IIll IIll
The problem with a profit maximization goal is that it fails to take account of risk,
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
the timing of the benefits is not considered, and profit measurement is a very inexact
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
process. The goal of shareholders’ wealth maximization implies that the firm will
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
attempt to achieve the highest possible total valuation in the marketplace. It is the
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
one overriding objective of the firm and should influence every decision.
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
1-9 When does insider trading occur? What government agency is responsible for
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
protecting against the unethical practice of insider trading?
IIll IIll IIll IIll IIll IIll IIll IIll
Insider trading occurs when anyone with non-public information buys or sells
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
securities to take advantage of that private information. The Securities and Exchange
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
Commission is responsible for protecting markets against insider trading. In the past,
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
people have gone to jail for trading on non-public information. This has included
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
company officers, investment bankers, printers who have information before it is
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
published, and even truck drivers who deliver business magazines and read positive
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
or negative articles about a company before the magazine is on the newsstands and
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
then place trades or have friends place trades based on that information. The SEC
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
has prosecuted anyone who profits from inside information.
IIll IIll IIll IIll IIll IIll IIll IIll
1-10 In terms of the life of the securities offered, what is the difference between money
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
and capital markets?
IIll IIll IIll
Money markets refer to those markets dealing with short-term securities that have a
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
life of one year or less. Capital markets refer to securities with a life of more than
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
one year.
IIll IIll
1-11 What is the difference between a primary and a secondary market?
IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur STUVATE. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour $12.49. Vous n'êtes lié à rien après votre achat.
