Estherlinasmith

Which of the following is most likely true about corporate governance? a) It seeks to mitigate conflicting interests between insiders and external shareholders. b) It is similar across most countries. c) It considers neither the shareholder theory nor the stakeholder theory. - -Which of the following is most likely true about corporate governance? a) It seeks to mitigate conflicting interests between insiders and external shareholders. Corporate governance is a set of rules and regulation...

capital budgeting - -the process of planning and managing a firm's longterm investments -Role of Finance - -1) Manage Cash--> management of daily activities 2) What projects should we take on (investments) -how should we finance them? -Owners=Managers? - -Owners are the stockholders Managers are the professionals hired to act on behalf of the owners -CFO - -Chief Financial Officer -Managerial, Financial accounting, taxes MIS (management info systems) -Treasurer - -concerned...

The liability of sole proprietors is limited to the amount of their investment in the company. - -FALSE - The liability of sole proprietors is unlimited -General partners have limited personal liability for business debts in a limited partnership. - -FALSE - General partners have unlimited personal liability in a limited partnership. -The liability of sole proprietors is limited to the amount of their investment in the company. - -FALSE - The liability of sole proprietors is unlimited -...

The liability of sole proprietors is limited to the amount of their investment in the company. - -FALSE - The liability of sole proprietors is unlimited -General partners have limited personal liability for business debts in a limited partnership. - -FALSE - General partners have unlimited personal liability in a limited partnership. -The liability of sole proprietors is limited to the amount of their investment in the company. - -FALSE - The liability of sole proprietors is unlimited -...

Corporate Finance - -The study of ways to answer these questions: Where will you get the long term financing for those investments? Will you bring in other owners or will you borrow the money? How will you manage your everyday financial activities such as collecting from customers and paying suppliers? What long term investments should you take on? That is, what lines of business will you be in what sorts of buildings, machinery, and equipment will you need? -Stockholders (owners) ar...

Corporate Finance - -The study of ways to answer these questions: Where will you get the long term financing for those investments? Will you bring in other owners or will you borrow the money? How will you manage your everyday financial activities such as collecting from customers and paying suppliers? What long term investments should you take on? That is, what lines of business will you be in what sorts of buildings, machinery, and equipment will you need? -Stockholders (owners) ar...

Corporate Finance - -The study of ways to answer these questions: Where will you get the long term financing for those investments? Will you bring in other owners or will you borrow the money? How will you manage your everyday financial activities such as collecting from customers and paying suppliers? What long term investments should you take on? That is, what lines of business will you be in what sorts of buildings, machinery, and equipment will you need? -Stockholders (owners) ar...

Net Present Value - -The difference between the market value of a project and its cost. -NPV How much value is created from undertaking an investment? - --The first step is to estimate the expected future cash flows. -The second step is to estimate the required return for projects of this risk level. -The third step is to find the present value of the cash flows and subtact the initial investment. -NPV-Decision Rule - -If the NPV is positive, accept the project. -A positive NPV mean...

capital budgeting - -what projects will be profitable and what won't be? -capital structure - -how much of the firms assets will be financed with debts? and how much will be financed by equity? -working capital management - -how will you manage firms everyday financial activities? -sole proprietorships - -businesses that have only one owner - pros: easy to start, no double tax ; cons: unlimited. liability, hard to transfer interest and expand -partnership - -a business owned by two ...

What is a corporate finance? - -What investments should you take on? Where will you get the financing to pay for your investment? When the business is successful, how will you share in the rewards? -What is a balance sheet? - -The balance sheet is a snapshot of the firm. It is a convenient means of organising and summarising what a firm owns (its assets), what a firm owes (its liabilities), and the difference between the two (the firm's equity) at a given point in time. -What are current...