ECN 320 Lecture Notes - Lecture 1: Capital Structure, Limited Partnership, Limited Liability
28 Aug 2015
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Document Summary
Get money through investors, bonds, stocks: how will we manage the everyday financial activities of the firm, financial manager, financial managers try to answer all or some of the questions, cfo top financial manager within a firm. Treasurer oversees cash management, capital expenditures and financial planning. Controller oversees taxes, cost accounting, financial accounting and data processing: financial management decisions, capital budgeting. Financial managers tries to identify the investment opportunity that makes positive profit: capital structure. So that the firm has sufficient resources to continue its operations without costly interruptions: forms of business organization 1. 2, sole proprietorship, partnership. Limited: corporations, sole proprietorship, business owned by a single owner with unlimited liability. Difficult to sell ownership interest: partnership, business owned by two or more people. Difficult to transfer ownership: corporation, business created as a distinct legal entity separate and distinct from its owners.
