Documente Academic
Documente Profesional
Documente Cultură
An Overview of Financial
Management
Career Opportunities
Issues of the New Millennium
Forms of Businesses
Goals of the Corporation
Agency Relationships
1-1
Career Opportunities in
Finance
1-2
Responsibility of the
Financial Staf
Managing risk
1-3
VP: Finance
Treasurer
VP: Operations
Controller
Credit Manager
Cost Accounting
Inventory Manager
Financial Accounting
Tax Department
1-4
Financial Management
Issues of the New
The efect of
Millennium
changing
technology
The
globalization of
business
1-5
60.8
35.9
Exxon Mobil
69.4
60.2
General Electric
32.6
25.2
General Motors
26.1
60.6
IBM
57.9
48.4
35.5
51.7
McDonalds
63.1
61.7
Merck
18.3
58.1
3M
52.9
47.0
Sears, Roebuck
10.5
7.8
1-6
Alternative Forms of
Business Organization
Sole proprietorship
Partnership
Corporation
1-7
Advantages
Ease of formation
Subject to few regulations
No corporate income taxes
Disadvantages
Corporation
Advantages
Unlimited life
Easy transfer of ownership
Limited liability
Ease of raising capital
Disadvantages
Double taxation
Cost of set-up and report filing
1-9
Agency relationships
Shareholders versus
Managers
Shareholders versus
Creditors
Projected cash
flows to
shareholders
Riskiness of the
cash flows
1-15
1
2
(1 k)
(1 k)
(1 k)n
n
CFt
.
t
t 1 (1 k)
1-16
Investment decisions