Assume that you recently graduated and have just reported towork as an investment advisor at the brokerage firm of Balik andKiefer Inc. One of the firmâs clients is Michelle DellaTorre, aprofessional tennis player who has just come to the United Statesfrom Chile. DellaTorre is a highly ranked tennis player who wouldlike to start a company to produce and market apparel she designs.She also expects to invest substantial amounts of money throughBalik and Kiefer. DellaTorre is very bright, and she would like tounderstand in general terms what will happen to her money. Yourboss has developed the following set of questions you must answerto explain the U.S. financial system to DellaTorre.
A. Why is corporate finance important to all managers?
B. Describe the organizational forms a company might have as itevolves from a start-up to a major corporation. List the advantagesand disadvantages of each form.
C. How do corporations go public and continue to grow? What areagency problems? What is corporate governance?
D. What should be the primary objective of managers?
1. Do firms have any responsibilities to society at large?
2. Is stock price maximization good or bad for society?
3. Should firms behave ethically?
Please don't copy from other sources. Thank you.
Assume that you recently graduated and have just reported towork as an investment advisor at the brokerage firm of Balik andKiefer Inc. One of the firmâs clients is Michelle DellaTorre, aprofessional tennis player who has just come to the United Statesfrom Chile. DellaTorre is a highly ranked tennis player who wouldlike to start a company to produce and market apparel she designs.She also expects to invest substantial amounts of money throughBalik and Kiefer. DellaTorre is very bright, and she would like tounderstand in general terms what will happen to her money. Yourboss has developed the following set of questions you must answerto explain the U.S. financial system to DellaTorre.
A. Why is corporate finance important to all managers?
B. Describe the organizational forms a company might have as itevolves from a start-up to a major corporation. List the advantagesand disadvantages of each form.
C. How do corporations go public and continue to grow? What areagency problems? What is corporate governance?
D. What should be the primary objective of managers?
1. Do firms have any responsibilities to society at large?
2. Is stock price maximization good or bad for society?
3. Should firms behave ethically?
Please don't copy from other sources. Thank you.
