Fin515 Homework

Chapter 1

Mini Case

Assume that you recently graduated and mother simply reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firms clients is Michelle DellaTorre, a professional tennis player who has just come to the united States from Chile. DellaTorre is a highly ranked tennis player who would homogeneous to start a company to produce and market dress she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. DellaTorre is very(prenominal) bright, and she would like to understand in general terms what depart happen to her money. Your boss has developed the following set of questions you essential answer to explain the U.S. financial system to DellaTorre.

a.Why is corporate finance definitive to all managers? Corporate finance is important because it provides the skills managers need to identify and select corporate strategies and individual projects that hit value to their firm and to forecast the funding requirements of their company, and devise strategies for acquiring those funds.

b.Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the gains and disadvantages of from each one form.



There argon three main types of organizational forms, fix ownerships, partnerships, and corporations. The three main advantages of a fillet of sole proprietorship are they are easily and inexpensively formed, they are subject to some government regulations, and its income is not subject to corporate taxation tho is taxed as part of personal income. The three limitations of a sole proprietorship are it is difficult to obtain capital for growth, the proprietor has unlimited liability, which can result in loss greater than invested, and life of the proprietorship is limited to the life of the founder. The major advantage of a partnership is that is low cost and ease of formation. The disadvantages of a partnership are unlimited liability, limited life of the...If you requirement to get a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .