MGCR 341 Study Guide - Midterm Guide: Preferred Stock, Fisher Hypothesis, Unsecured Debt
27 Feb 2014
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Corporate finance: financial management of assets and corporate financing decisions. The financial manager should maximize shareholder wealth and increase firm value by increasing the firm"s profits and share price. Day-to-day activity of managing firm"s money to continue operations. Present day, firms are more competitive worldwide, and the stock markets are more volatile. Sole proprietorship: owned by one person who assumes unlimited liability for debts: there is no distinction made between personal and business income, it is least regulated and easiest to start of the business organizations in canada. It is difficult to transfer ownership without dissolving it or if a general partner dies out. Limited partnership: one or more general partners runs the business and has unlimited liability, and where the limited partners do not actively participate in the business. Limited partner"s liability is limited to the amount of cash each has contributed to the partnership.
