FIN 3715 : FIN 3715 Notes Test 1
Document Summary
Managing short-term assets and liabilities: who is the financial manager, chief financial officer (cfo)- top officer of a firm appointed by owners or stockholders to handle financial issues, coordinates the activities of the treasurer and the controller. Controller: oversees cost and financial accounting, taxes and information systems. Treasurer: oversees cash management, credit management, financial planning and capital expenditures, forms of business organization, sole proprietorship, a business owned by one person, more proprietorships than any other type of business, advantages. Single owner keeps all of the profits. Taxed once as personal income: disadvantages. Equity capital limited to owner"s personal wealth. Difficult to sell ownership interest: partnership. A business with multiple owners, but not incorporated: advantages. More capital available relatively easy to start. Income taxed once as personal income: disadvantages. General partnership: all partners share in gains or losses and all have unlimited liability for all partnership debts. Composed of one or more owners: advantages.
