ADMS 3530 Lecture 1: - Goals & Governance of the Firm

• School: York University
• Department: Administrative Studies
• Course: ADMS 3530
• Professor: Ahmad Waquar

Document Summary

Lecture 1 - goals & governance of the firm. Venture capitalists - (please check definition and write it down) Current assets - current liabilities = net worth in capital. Non-current liabilities + owner"s equity is financing -> capital structures. With investments, managers are responsible for choosing projects (investing money into projects) and where they will get the money for these projects. Real assets are physical assets that can generate revenue at a cost. Financial assets are claims to profits and so on. Capital gain: buying shares from a company and selling them at a higher price per share for profits; this is included in your personal income and the company will not be taxed for this. What capital investment projects to invest in and how much to spend one each project. Called capital budgeting decision or the investment decision. The financial manager needs to place a value on the uncertain future cash flows (benefits) generated from the investment projects.