Project Management Essay

1138 Words Feb 7th, 2014 5 Pages
A. Why is corporate finance important to all managers?

Corporate finance is important to all mangers because it is a component of how a business is run. It is important for managers to know how to direct funds for the betterment of the company. It is also important to mangers in order to know where the company stands financially.

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 for.

The forms a company evolves from proprietorship to partnership and then to a corporation.

Some advantages of proprietorship are it is easy and inexpensive to form. It is subject to few government regulations and it’s income is not subject to
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Corporate governance are rules and practices that hold directors accountable for fairness and transparency with all the stakeholders.

D. What should be the primary objectives of managers?

Some primary objectives of managers are to forecast future needs of the team, escalate issues to upper management, assign and monitor cost.

(1) Do firms have any responsibilities to society at large?
Yes, firms are ethically responsible to provide a safe environment for the workers.
(2) Is stock price maximization good or bad for society?
Stock maximization requires low cost operations that create high quality goods and services at the lowest possible cost. Stock price maximization requires the increase of products and services that consumers need and want, which will lead to new technology new products and new jobs.
(3) Should firms behave ethically?
Yes, firms should behave ethically because just like any other corporation, they are held to a high standard and are expected to behave in a way that is not detrimental to the business or client.
E. What three aspects of cash flows affect the value of any investment?
The three aspects of cash flows that affect the value of any investment are operating cash, taxes and sales revenue..
F. What are free cash flows?
Free cash flows represent the cash that a company is able to generate after laying out the money required to

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