Chapter Summary

Chapter Summary Investment and Financing Decisions -Investment Decisions can also be called gravid budgeting or detonator expenditure decisions. - Two major prudence decisions argon what to intrust in and how to pay for it. -Financial managers are non the only ones that make investment decisions. Many key employees from mingled departments in a corporation take part in the decisions. What is a Corporation? -Corporations have most of the rights of an individual. Corporations are have by shareholders, but shareholders have limited liability so they arent trustworthy for a corporations debt. -The shell of the Financial Manager -Deals with investors and helps with managing the firms operations. - oral energise financial officer responsible for managing the financial risks of the corporation and oversees the have of all the financial staff. -Treasurer In charge of short experimental condition financing transactions, maintenance, and disbursement of funds . -Controller- Chief accountant that oversees financial statements and task returns. The Investment Trade-off -Corporations must nail down to invest in labor movements or pay out cracking to its shareholders. If the rate of return is higher on the investment ensure rather than on what shareholders can gain on their own, shareholders would intention to support the project.

If the corporation does invest cash into the project, the shareholders lose the contingency to invest the money on their own. The opportunity cost of capital of the United States is the return that the shareholders are giving up. Goals of the Corporation -Corporations involve t! o maximize shareholders wealth while remaining ethical. -Keep all stakeholders happy and lift their business. incorporate Governance -Ensures that corporate managers pretty much handle the value of shareholders as if it were their own money at risk. -Board of directors equal shareholders and more than one-half of the directors can not be associated with management. -------------------------------------------------...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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