ADMS 3530- Final Exam Guide - Comprehensive Notes for the exam ( 79 pages long!)

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Adms 3530 ch 1 goals & governance of the firm. Investment & financing decisions: the investment (capital budgeting) decision, capital budgeting decision investment decision, requires annual budget listing authorized investments. Investments can be intangible (r&d / patents/ trademarks) Investment decision: purchase of real assets: financial decision: sale of financial assets, amount of investment determines financing requied to be raised, money flow, cash raised from investors used to pa(cid:455) fo(cid:396) (cid:396)eal assets fo(cid:396) fi(cid:396)(cid:373)"s ope(cid:396)atio(cid:374)s. Generate cash inflow to repay initial investment cash reinvested or returned to investors (depends if money borrowed or not: real assets used to produ(cid:272)e fi(cid:396)(cid:373)"s p(cid:396)odu(cid:272)ts & se(cid:396)(cid:448)i(cid:272)es, tangible machinery/factory/offices. Intangible knowledge/ trademarks / patents: financial assets, share stock / bank loan securities stock & financial asset purchased & traded by investors. Limited liable for money they contribute & cannot participate in management: professional corporations taxed as corporation, but professionals can be sued personally (ex. malpractice) Income trust investment fund (mutual trust fund)