Financial Management and the Firm

12 important questions on Financial Management and the Firm

Why are ethics and trust important in business?

Collaboration with different stakeholders is always (partially) depended on trusting one an other and being ethical towards collaboration

What is capital structure decisions?

the decion-making process with funding choises and the mix of long-term sources of funds

Why study finance?

to learn all of which involve spening money, in the hopes of generating more money in the future
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What is the role of a treasurer?

Management of cash, credit, capital, the financial planning and currencies

What are the basic types of issues adressed in the study of Finance?

  • strategic planning
  • personnel
  • organizational behavior
  • human relations
  • all that involves spending money

What is the legal form of business called partnership?

an association of two or more individuals joing together as co-owners to operare a business for profit

What is the legal form of business called general partnership?

a partnership in which all partners are fully liable for the indebtedness incurred by the partnership

What is the legal form of business called limited partnership?

a partnership in which one or more of the partners has limited liability, restricted to the amount of capital he or she invests in the partnership

What is the legal form of business called corporation?

an entity that legally functions seperate and apart from its owners

What is the legal form of business called limited liability corporation (LLC)?

a cross between a partnership and a corporation under which the owners retain limited liability but the company is run and taxed like a partnership

Why do large and fast growing companies choose the entity of a corporation?

not the owner, but the company is liable and the ownership, therefor wealth and risks, can be divided between large number of poeple or other companies.

What is the form of business called international corporation?

Due to technology, companies are able to reach stakeholders further than their hometown, across boarders and seas, all around the world

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