[FIN 3403] - Final Exam Guide - Ultimate 60 pages long Study Guide!
Document Summary
Financial management of the firm - chapter 1 notes. Collection of assets to be used in production. Long term plant, property, equipment used to produce services and products. Sole proprietorship - business owned by one person. Partnership - unincorporated business with multiple owners. All funds, taxes, ownership is placed on a personal level on the owners. Equity capitals - funds put in by owners. Debt capital - borrowings that the company has made that they"ll have to pay back to creditors. It"s harder to access and get capital. Corporation - distinct legal entity; legally a person . Only amount of money contributed towards business is at risk; not total amount of personal assets. Income distributed to shareholders as dividends are both paid to irs as rm"s earnings and then shareholder"s income tax. Three main important areas of decision-making: how to manage everyday nancial activities of the rm (daily cash ow) Working capital management: what long-term investments the rm takes on.
