Business > CASE STUDY > GB 550 Unit 1 Assignment.docx GB550: Financial Management Unit 1 Assignment a.Why i (All)

GB 550 Unit 1 Assignment.docx GB550: Financial Management Unit 1 Assignment a.Why i

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GB 550 Unit_1_Assignment.docx GB550: Financial Management Unit 1 Assignment a.Why is corporate finance important to all managers? Because it provides the skills managers need to plan corporate... strategies that add value to their firm. It also helps them determine how much and how to secure funds for their firm. b.Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. A proprietorship is owned by one individual and is easy to start. Other advantages are that it is inexpensive to start, it few government regulations that affect it and it is not required to pay corporate income tax on profits. One disadvantage is that it might be difficult to get funding for a proprietorship. Because the proprietorship is connected to its owner, the life of the business is limited to the life of the owner and the business debts are connected to the owner as well including losses not directly related to investments. If an owner plans to outgrow as a small business than this wouldnt be the best option. A partnership has two or more owners, and its agreements define the ways any profits and losses are shared between partners. If bankruptcy occurs partners can potentially be liable for business debts. There are two options that gives partnerships an advantage, limited partnerships/limited partners as well as limited liability company (LLP)/ limited liability company (LLC). All of these options help members or part. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]

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