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Chapter 01 An Overview of Financial Management

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An Overview of Financial Management Chapter 1 © 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. An Overview of Financial Management Forms of Business Organization Creating Value for Investors Stockholder-Manager Conflicts Stockholder-Debtholder Conflicts Balancing Interests of Shareholders and Society © 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Finance Within the Organization Board of Directors Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Marketing, Production, Human Resources, and Other Operating Departments Accounting, Treasury, Credit, Legal, Capital Budgeting, and Investor Relations © 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Forms of Business Organization Proprietorship Partnership Corporation © 2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Proprietorships and Partnerships ▪ Advantages • Ease of formation • Subject to few regulations • No corporate income taxes ▪ Disadvantages • Difficult to raise capital • Unlimited liability • Limited life ▪ Often set up throu ...
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