FINA601 Lecture Notes - Lecture 1: Chief Financial Officer, General Partnership, Proxy Fight
Document Summary
Week 1 lecture 1 chapter 1 & 2: introduction to corporate finance and financial. In large firms, the finance activity is usually associated with a top officer of the firm, such as the vice president and chief financial officer, and some lesser officers. Treasurer: responsible for handling cash flow, managing capital expenditure (investments) and making financial plans, known as the finance head or finance controller. Controller: handles the accounting function which include taxes, cost and financial accounting, and information system, known as the head of accounting. The corporate firm (1. 2: the firm is a way of organizing the economic activity of many individual. Sole proprietorship: owned by one person, cheapest business to form, no corporate income taxes, all profits of the business are taxed as individual income. Involves two or more people: usually in-expensive and easy to form. Dis-advantage: unlimited liability, difficulty of transferring ownership, limited life of the enterprise.
