Chapter Summary

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

If the corporation does invest cash into the project, the shareholders lose the chance to invest the money on their own. The opportunity cost of capital is the return that the shareholders are giving up. Goals of the Corporation -Corporations urgency to increase sharehol! ders wealth while remaining ethical. -Keep all stakeholders happy and arise their business. incorporate Governance -Ensures that corporate managers pretty much dispense the value of shareholders as if it were their own money at risk. -Board of directors settle 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

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