Corporations typically employ managers to represent owners" interests & make decisions on their behalf. Financial management decisions: capital budgeting: process of planning & managing a firm"s long-term investments. Essence of capital budgeting is evaluating the size, timing, & risk of future cash flows: capital structure: mixture of debt & equity maintained by a firm. Must decide on financial structure & how & where to raise money: working capital: firm"s short-term assets & liabilities. Managing firm"s working capital is day-to-day activity that ensures firm has sufficient resources to continue its operations & avoid costly interruptions. Partnership: business formed by 2+ individuals/entities: similar advantages & disadvantages to sole proprietorship. Goal of financial management is to maximize current value per share of existing stock. More general goal is maximizing market value of existing owners" equity (if no stock issued) Sarbanes-oxley act enacted by congress in 20022 to protect investors from corporate abuses. The agency problem and control of the corporation.