Mini Case Why is corporate finance important to all managers? Corporate fiancé is the basic component of how business is run. It is necessary to direct funds or products in a company. Corporate finance also helps managers to forecast the funding requirements of their company and the necessary strategies to acquire those funds. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation.
January 5, 2012 FI515 Homework 1 Mini Case Why is corporate finance important to all managers? Corporate finance is the field of finance dealing with financial decisions that business enterprises make and the tools and analysis used to make these decisions. Corporate finance is important to all managers because it help managers learn the necessary skills select the corporate strategies and individual projects that add value to their company. It`s also tool for managers to know how to find funding for their company and what is the best strategy they need to adopt to do so. b.
* Mini Case (p. 45) a) Why is corporate finance important to all managers? All managers are mandated with a goal to improve the businesses bottom line. Successful corporations have two main goals they must meet to stay in business. The first goal is “identifying, creating, and delivering highly valued products and services to its customers.” (Brigham) The second goal is to generate “enough cash to compensate the investors who provided the necessary capital.” Behind every managerial action, the manager must ally every action they take with meeting the above two goals. In order to evaluate the success of those decisions, managers must be able to analyze their decisions and fully understand the impact past decisions will have on the past, present, and future health of the company.
For this, you must have expertise in finance. b. 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. | Advantage | Disadvantage | Sole proprietorship: | -easily and inexpensively formed-subject to few government regulations-income not subject to corporate taxation | -difficult to obtain capital needed for growth-unlimited personal liability-life of proprietorship limited to life of founder | Partnership: | -easily and inexpensively formed-subject to few government regulations-income not subject to corporate taxation | -difficult to obtain capital needed for growth-unlimited personal liability-life of proprietorship limited to life of founder | Corporation | -unlimited life-easy transferability of ownership interest-limited liability | -corporate earnings may be subject to double taxation- more complex and time- consuming than creating a proprietorship or a partnership | c. How do corporations go public and continue to grow?
Evaluate the external corporate communications of an existing product or service. Evaluate the corporate communication which has been used to promote this product or service. There are three different types of corporate communications; management communications, marketing communications and organisational communications each of which have their own individual purposes. Management communications are used between the management of a company and its external and internal audiences. Marketing communications have an extremely important role in businesses and a large amount of a business’s budget goes into this as this consists of advertising, sponsorship activities, direct mailing and personal selling.
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.
Consider the following: • What kinds of accounting, audit, and tax services does the firm provide? • Who is their target market(s) by industry and company? • Why would prospective clients give serious consideration to have KSM handle their accounting, audit and tax services? 3. Working in an ever changing accounting, audit and tax environment that is driven by change and strict regulatory adherence, how does the managing partner (David Resnick): • Ensure strict employee compliance to federal and state regulation and the company’s high ethical standards?
What must a company excel at? What value addition our customers expect from us? How much value a company generates for its shareholders? How a company can improve and innovate? For further elaboration following elements are used in the balanced scorecard: Financial Perspective Internal Processes Learning and Growth Customer Perspective Strategy Map for Ashton Graduate School: The strategy map specifically provides the information about the strategic direction towards the objectives that are more significant for all the employees of the company to act on it accordingly.
b. Two key advantages of the corporate form over other forms of business organization are unlimited liability and limited life. c. A corporation is a legal entity that is generally created by a state; its life and existence is separate from the lives of its individual owners and managers. d. Limited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization. e. Although its stockholders are insulated by limited legal liability, the corporation's legal status does not protect the firm's managers in the same way; i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economic conditions.
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.