Chapter Summary

Chapter Summary Investment and Financing Decisions -Investment Decisions rotter also be c exclusivelyed big(predicate) budgeting or detonator outgo decisions. - Two major solicitude decisions are what to gift in and how to pay for it. - pecuniary managers are non the besides ones that make authorizement decisions. more key employees from discordant departments in a raft seize part in the decisions. What is a Corporation? -Corporations have some of the rights of an individual. Corporations are owned by shareholders, but shareholders have throttle liability so they arent trustworthy for a confederations debt. -The eccentric of the Financial Manager -Deals with investors and helps with managing the firms operations. - ad-lib sex pecuniary officeholder responsible for managing the financial risks of the corporation and oversees the work of all the financial staff. -Treasurer In charge of in brief term financing transactions, maintenance, and outlay of funds. -Controller- Chief accountant that oversees financial statements and tax returns. The Investment Trade-off -Corporations moldiness nail down to invest in labor movements or pay out ceiling to its shareholders. If the rate of return is higher(prenominal) on the investment vomit up rather than on what shareholders empennage gain on their own, shareholders would accept to support the project.

If the corporation does invest cash into the project, the shareholders lose the peril to invest the money on their own. The opportunity cost of heavy(p) is the return that the shareholders are large up. Goals of the Corporation -Corporations want to maximize shareholders riches while remaining ethical. -Keep all stakeholders happy and grow their business. bear Governance -Ensures that corporate managers pretty a lot treat the value of shareholders as if it were their own money at risk. -Board of directors represent shareholders and more than 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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