[BUSN 301] - Final Exam Guide - Ultimate 25 pages long Study Guide!
Document Summary
Financial institutions: meadiaries between corporate fin and capital market. Long term investments, most efficient way to raise capital. Why llc, let"s not scare people away from starting a small business. We want innovation, in order to lower risk we make sure it"s a llc, can"t be sued for personal, bankruptcy you don"t lose your house. Your job as a fin man is to maximize the value of owner"s equity. Here"s the trick if you did it all perfect, you are the richest, (oil, diamond) most efficient and the way shareholders and market, market will value shares at the maximum value. Regulatory burden they had to meet, costs the firm money. To make most value you must consider all tradeoffs. Ex: small group of people making large decisions. In order to have gotten that far they had to go to capital markets (millions of stake holders) shareholders, that"s their money. They"re the principal, shareholders hire the ceo (agent).
