E) None of the above A) 4. A firm's investment decision is also called the: A) Financing decision B) Capital budgeting decision C) Liquidity decision D) None of the above Answer: B 5. The goal of a financial manager is to: A) Maximize sales B) Maximize profits C) Maximize the wealth of all the firm’s security holders, including debt and stock holders D) Maximize the wealth of the share holders E) None of the above Answer: D Financial managers are to maximize the wealth of shareholders. This is because shareholders are the owners and managers are hired by them. 6.
Week 4 Team Reflection Organizational behavior is the theme of Week 4. Team C discussed how organizational structure, culture, and power impact behavior. While analyzing those topics, we learned the agendas for companies when forming a structure. Organizational culture develops from individual perspectives based on the concepts of businesses. There are many influential forms contributed to power and politics.
Mini Case a. Why is corporate finance important to all managers? * Corporate finance provides the skills managers need to identify and select the corporate strategies and individual projects that add value to their firm. It is also important because corporate finance forecasts the funding requirements of their company, and devises strategies for acquiring those funds. b.
This information will be discussed in the content of the case study. There will be important challenges, such as security issues and other problems and more. Explain how you would respond to the CEO. The new CEO asking the question of the project manager in reference to the status of the “Large Financial Project”. I as the financial “stated, in our company, each project defines its own process and technology architect to implement systems.” As the project manager I am aware of the appearance of being behind schedule in which, I made the CEO aware of this.
The heart of the case is a model that is developed by the firm’s corporate treasury staff to help them think about the static tradeoff of tax shields and financial distress in a dynamic setting. The model includes the main sources of operating risks that the firm faces, including exchange rate risk and interest rate risk, and measures the impact of different capital structure policies on the firm value using Monte Carlo simulation. Questions Part I (50% of the grade) 1. Provide brief answers to the following questions. These are
We will take a look at how a senior executive would mentor junior employees. We will also look at how an HR department helps to develop financial executives who are ethical leaders and mentors. Review/Analysis of the Case Answer to question #1 - I think the most important way for a senior executive to mentor employees is to set a good example. Ethical leaders set the standard for every employee they lead. Management behavior has a great impact on ethical standards.
Layal Zarka IB 500 The Global Economy Final Exam Essay Compare and contrast the three major corporate governance approaches we have studied (shareholder capitalism, stakeholder capitalism, and state ownership). Which system do you think is the best at maximizing long-run economic performance of the firm and why? The Economic Times defines Corporate Governance as a, "set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term." The stakeholders mentioned in the definition refer to all parties involved with the firm, these could be: the board of directors, management, shareholders to customers, employees, labour unions, etc.
There are three forms of businesses, the sole proprietorship, partnership and companies. The default option is to be a sole proprietor. With this option there are fewer forms to file than with other business organizations. The business is structured in such a manner that legal documents are not required to determine how profit-sharing from business operations will be allocated. This structure is acceptable if you are the business's sole owner and you do not need to distinguish the business from yourself.
The products or services sold are exactly the same, which is known as 'homogeneous' which are all the same price. Firms earn only normal profit (the bare minimum profit necessary to keep them in business). If firms started to earn more than that the absence of barriers to entry means that other firms will enter the market and drive the price level down until there are only normal profits to be made. Even the technology used is the same throughout all the companies. www.economist.com www.oligopolywatch.com Monopoly A definition of Monopoly is 'it exists when there is only one supplier of a product or service.'
It is the simplest and most flexible business structure. b. Characteristics - Owned by one person or one company - It is not a legal entity (i.e. it cannot sue or be sued in its own name and it cannot own or hold any property) - Profits are taxed at personal income tax rates c. Who Can Register - Almost anyone or any company can register a sole-proprietorship - There are some exceptions. For instance, un-discharged bankrupts may not be allowed to register such entities in Singapore. - The owner must appoint a local manager if he/she is not "ordinarily resident" in Singapore (does not have a local address and cannot legally remain in Singapore for a long period of time) - The local manager must be above 18 years old and be one of the following: a.