BUSI 2504 Study Guide - Efficient-Market Hypothesis, Financial Intermediary, Life Insurance

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Lo1 the basic types of financial management decisions and the role of the financial manager. Lo2 the financial implications of the different forms of business organization. Lo4 the conflicts of interests that can arise between managers and owners. Lo5 the roles of financial institutions and markets. Answers to concepts review and critical thinking questions. 14. (lo2) disadvantages: unlimited liability, limited life, difficulty in transferring ownership, hard to raise capital funds. The controller"s office handles cost and financial accounting, tax management, and management information systems, while the treasurer"s office is responsible for cash and credit management, capital budgeting, and financial planning. Therefore, the study of corporate finance is concentrated within the treasury group"s functions. (lo4) in the corporate form of ownership, the shareholders are the owners of the firm. The shareholders elect the directors of the corporation, who in turn appoint the firm"s management.