Fi515 Week 2 Assignment

A. Why is corporate finance crucial to all managers? It is of the essence(p) because it provides skills managers need to identify and select the corporate strategies and individual projects that supply value to its firm. Corporate Finance also forecast the backup 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, coalitions, and great deals. There ar also hybrid forms which ar express mail partnership, the check liability partnership, the professional corporation, and the s corporation. The advantages of a proprietorship are: it is easily and inexpensively formed, it is abase to few government regulations, and the trading pays no corporate income tax revenuees. The disadvantages are: it is difficult for it to obtain rotund sums of capital, the proprietor has un control face-to-face liability for the business debts, and the living of the business organized is confine 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 possession, 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 meshing may be subject to double taxation, and setting up a corporation and file the many required evoke 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, ready it on our website: OrderCustomPaper.com

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