Fi515 Week 2 Assignment

A. Why is corporate finance crucial to all managers? It is alpha because it provides skills managers need to identify and select the corporate strategies and individual projects that issue value to its firm. Corporate Finance also forecast the financial support 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, alliances, and crappers. There be also hybrid forms which are express mail partnership, the modified liability partnership, the professional corporation, and the s corporation. The advantages of a proprietorship are: it is easily and inexpensively formed, it is surmount to few government regulations, and the trading pays no corporate income valuatees. The disadvantages are: it is dif ficult for it to obtain rotund sums of capital, the proprietor has un trammel own(prenominal) liability for the business debts, and the living of the business organized is bound 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 self-command, 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 maj or advantages which are: unlimited life, e! asy transferability of ownership interest, and limited liability. Disadvantages of a corporation are: corporate salary may be subject to double taxation, and setting up a corporation and file the many required plead 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, purchase order it on our website: OrderCustomPaper.com

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