FINC 301 Final: Exam #1 study guide.docx
Document Summary
Identify the key financial decisions made by financial managers. Should always make these decisions in a way that maximizes the current value of the firms stock. Identify the basic forms of business organization in the united states and their respective strengths and weaknesses. The corporation is responsible for its obligations and actions. Hybrid forms of business organizations: limited liability partnerships (llps, limited liability companies (llcs, professional companies (pcs) All have the limited liability of a corporation and tax advantage of a partnership: describe the typical organization of the financial function in a large corporation. Ceo: ultimate power to make decisions, ultimate responsibility of decisions, reports to board, chief manager in firm. Treasure: manages and reports and collections of cash. Internal auditor: makes sure financial reports are accurate, works inside company, watches for fraud and inefficient use of resources. External auditor: accounting firms that comes in and check to make sure they are prepared.
