Fi515 Week 2 Assignment

A. Why is corporate finance crucial to all managers? It is measurable because it provides skills managers need to identify and select the corporate strategies and individual projects that planning value to its firm. Corporate Finance also forecast the strengthener requirements of the company and devise strategies for acquiring those funds. B. Describe the organizational forms a company might have as it evolves from a start-up to a major(ip) quite a little. List the advantages and disadvantages of each form. The organizational forms be mend proprietorships, fusions, and conjunctions. There argon also hybrid forms which are express mail partnership, the special(a) liability partnership, the professional corporation, and the s corporation. The advantages of a proprietorship are: it is easily and inexpensively formed, it is melt off to few government regulations, and the trading pays no corporate income assesses. The disadvantages are: it is difficult for it to obtain rotund sums of capital, the proprietor has un express personalised liability for the business debts, and the living of the business organized is confine to the life of the individual who created it. The major advantage of a partnership is its low cost and alleviate of formation.

The disadvantages are: unlimited liability, limited life of the organization, obstacle of transferring monomania, and difficulty of raising large amounts of capital. The tax treatment of a partnership is similar to that for proprietorships, which is often an advantage. The corporation has three major advantages which are: unlimited life, easy transferability of own ership interest, and limited liability. Di! sadvantages of a corporation are: corporate requital may be subject to double taxation, and setting up a corporation and file the many required invoke and federal reports is more multiplex and time-consuming. In a limited partnership, the limited partners are apt(predicate) only for the amount of their investment in the partnership;...If you lack to get a full essay, nine it on our website: OrderEssay.net

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