FIN 300 Chapter Notes - Chapter 1: Rbc Dominion Securities, Abuse, Corporate Social Responsibility
Document Summary
Fin 300 chapter 1: introduction to corporate finance. Most large corporations centralize their finance function and use it to measure performance in other areas. Shareholders are usually not directly involved in making business decisions: managers are hired to represent shareholder"s interest. Capital structure (financial structure) the mix of debt and equity maintained by a firm: great deal of flexibility in choosing financial structure, determining where to borrow money, how much, and in what mix manger"s job. Working capital management planning and managing the firm"s current assets and liabilities: working capital refers to firm"s short-term assets (inventory, payment to suppliers). Managing is a day-to-day activity that ensures the firm has sufficient resources to continue its operations. Sole proprietorship a business owned by a single individual: simplest type of business to start and the least regulated, keep all the profits, but have unlimited liability. Creditors can look beyond assets to personal assets for payment: all business income is taxed as personal income.
