Textbook Notes (362,790)
Canada (158,054)
York University (12,350)
Economics (958)
ECON 4400 (8)
Dr. (5)
Chapter 1

Chapter 1.doc

3 Pages
Unlock Document

York University
ECON 4400

CHAPTER 1INTRODUCTION TO CORPORATE FINANCELearning ObjectivesLO1 The basic types of financial management decisions and the role of the financial managerLO2The financial implications of the different forms of business organizationLO3The goal of financial managementLO4The conflicts of interests that can arise between managers and ownersLO5The roles of financial institutions and marketsAnswers to Concepts Review and Critical Thinking Questions1LO1 Capital budgeting deciding on whether to expand a manufacturing plant capital structure deciding whether to issue new equity and use the proceeds to retire outstanding debt and working capital management modifying the firms credit collection policy with its customers LO12LO2 Disadvantages unlimited liability limited life difficulty in transferring ownership hard to raise capital funds Some advantages simpler less regulation the owners are also the managers3LO2 The primary disadvantage of the corporate form is the double taxation to shareholders of distributed earnings and dividends Some advantages include limited liability ease of transferability ability to raise capital unlimited life and so forth4LO4 The treasurers office and the controllers office are the two primary organizational groups that report directly to the chief financial officer The controllers office handles cost and financial accounting tax management and management information systems while the treasurers office is responsible for cash and credit management capital budgeting and financial pl
More Less

Related notes for ECON 4400

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.