Chapter Summary

Chapter Summary Investment and Financing Decisions -Investment Decisions can also be called gravid budgeting or detonator expenditure decisions. - Two major prudence decisions atomic number 18 what to send in and how to pay for it. -Financial managers are non the only ones that make investment decisions. Many key employees from variant departments in a corporation take part in the decisions. What is a Corporation? -Corporations have most of the rights of an individual. Corporations are possess by shareholders, but shareholders have limited liability so they arent trustworthy for a corporations debt. -The flake of the Financial Manager -Deals with investors and helps with managing the firms operations. - oral ride financial officer responsible for managing the financial risks of the corporation and oversees the doing of all the financial staff. -Treasurer In charge of short edge financing transactions, maintenance, and disbursement of funds. -Contr oller- Chief accountant that oversees financial statements and evaluate returns. The Investment Trade-off -Corporations must nail down to invest in labor movements or pay out roof to its shareholders. If the rate of return is higher on the investment propose rather than on what shareholders can gain on their own, shareholders would rent to support the project.

If the corporation does invest cash into the project, the shareholders lose the jeopardise to invest the money on their own. The opportunity cost of corking is the return that the shareholders are giving up. Goals of the Corporation -Corp orations necessitate to maximise sharehold! ers wealth while remaining ethical. -Keep all stakeholders happy and mother their business. incorporate Governance -Ensures that corporate managers pretty much lot the value of shareholders as if it were their own money at risk. -Board of directors oppose 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: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay