Kimberly Pulda
Mini Case A. Corporate finance is important to all managers because it helps identify the goals of the company. These goals are: a. Identifying b. Creating c. Delivering highly valued products and services to customers
The goals require the three attributes which are first, successful companies have skilled people at all levels inside the company. Second, successful companies have a strong relationship outside the company. Third, successful companies have enough funding to execute their plans and support their operations.
The skills provided are to identify and select the corporate strategies and individual projects that add value to their firm and also to forecast the funding requirements of their company, and devise strategies for acquiring those funds. B. d. Proprietorship is an unincorporated business owned by one individual. i. Advantages 1. Easy to set up 2. Few government regulations 3. Income is not subject to corporate taxation but is taxed as part of the proprietor’s personal income ii. Disadvantages 4. May be difficult for a proprietorship to obtain the capital needed for growth 5. The proprietor has unlimited personal liability for the business’s debts which can result in losses that exceed the money invested in the company 6. The life of a proprietorship is limited to the life of the founder e. Partnership exists whenever two or more persons or entities associate to conduct a noncorporate business for profit. iii. Advantages 7. A partnership have the same advantages and disadvantages as a proprietorship f. Corporation is a a legal entity separate from its owners and managers iv. Advantages 8. Unlimited life 9. Easy transfer of