Fin515 Essay

1780 Words8 Pages
FIN515 Unit 1 Mini Case Julie Robinson November 1, 2013 Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle DellaTorre, a professional tennis player who has just come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to produce and market apparel she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. DellaTorre is very bright, and she would like to understand in general terms what will happen to her money. Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre. Why is corporate finance important to all managers? Corporate finance is essential to each and every executive level position, which provides the skills to ascertain specific business strategies and particular tasks that integrate value to their organization. In addition to being able to foresee capital provisions and their implementation into the business Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. The three business forms an organization may encounter throughout its formation from a start-up to a major company are sole proprietorship, partnership, and corporation. Some advantages and disadvantages of each form are as follows: Sole Proprietorship Advantages: construction is effortless and economically sound, minimal government guidelines, and does not under go any business tax conditions. Disadvantages: fractional life expectancy, limitless legal financial accountability, and the cultivation of capital for growth are problematic. Partnership Advantages: benefits from a
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