Answers below need to be solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines.
Corporate finance provides the skills a.) managers need to: Identify and select the corporate strategies and individual projects that add value to their firm. Forecast the funding requirements of their company, and devise strategies for acquiring those funds. b.) LLP Advantage : 1. liabilties are limited to the extent of capital. 2. members not needed as in the case of company for taking any decision. Disadvantages: 1. process is lengthy and hectic. 2. Trust of society is difficult to get. Sole-proprietership Advantages: 1. Easy to form and exit. 2. Minimum formalities are required. Disadvantage 1. unlimited liability in case of bad debt. 2. As person is controlling by self, Expertise for the other segments very difficult such as finance, marketing and operations. Company as Private or public Advantages: 1. Bank loans easily available. 2. Liability is limitedto the extent of capital employed in the business. Disadvantages 1. Lengthy formalities are there for registration and other compulsion. 2. Timely decision as formalities such as return filling, Tax return etc. need to be complied with and other legal rules also need to be followed as well. c.) A company goes public when it sells stock to the public in an initial public as the firm grows, it might issue additional stock or debt rather than taking bank loans. This gives common public to become part of the company this might or not give them return but may be good as ROI offered may outweigh there cost for future as price may be overstated as per present. An agency problem occurs when the managers of the firm act in their own self-interests and not in the interests of the shareholders. Corporate governance is the set of rules that control a company's behavior towards its directors, managers, employes, shareholders, creditors, competitors, and community. d.) yes managers seek profitability and business stabilityinfact they also look for long term growth of the business they are involved in forecast and predict based on available data. (1) Yes, firms have responsibility towards society as What belongs to society must be returned to back society as in india, Goverment has Asked companies operating in india to Contribute 5% of net profits in the form of corporate social responsibility. (2) It is neither good or bad, if for maximizing profit it employs unfair practises same can be said to be bad practises, If same is Implied but it doesnot cause any bad to the society as all practises are within social obligations then it cannot be considered bad. (3) Yes, It serves society and people at large but same company will loose respect from people and goverment if doesnot act ethically, thus detoriating its value and image in the society at large. e.) 1. Risk 2. Timing of cash flow 3.Amount expected f.) Free cash flow: Capital revenues - Capital expenditures defines the value of a free cash flow
