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Finance at its core involves management of capital. Consider a non-financial public corporation where a CFO manages its capital (the three broad aspects of managing

  1. Finance at its core involves management of capital. Consider a non-financial public corporation where a CFO manages its capital (the three broad aspects of managing capital).
    1. What are the linkages between finance and the various other functional areas in business (besides accounting and economics)? Specifically, how do decisions in these functional areas impact financial decisions made by a CFO regarding managing capital.
    2. What are the linkages between the different areas of finance? Specifically, how would decisions made by a CFO be affected by decisions made by i) decisions of individuals and ii) functioning, structure, and decisions of financial markets and institutions?
  2. Answer the following questions pertaining to various forms of businesses
    1. What are the key differences between proprietorships, partnerships, and corporations? How do these differences impact a managers ability raise capital? Why do we focus on a C corporation?
    2. Provide two examples of hybrid forms of business ownership and explain why each is necessary (i.e., what can they achieve that the basic types cannot). Also identify limitations imposed on each (by federal and state governments) to prevent abuse.
  3. What should the primary objective (fiduciary responsibility) of a manager be when making decisions in a corporation? Why would the following goals not always be consistent with this primary objective
    1. Maximizing expected profit to investors.
    2. Maximizing expected EPS.
    3. Minimizing the chances of losses to Investors.
    4. Maximizing expected net income.
    5. Maximizing Expected Revenues

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