ADMN 3200H Lecture Notes - Lecture 1: Joint-Stock Company, Sole Proprietorship, Dividend Policy
Document Summary
Introduction to corporate finance; financial statements, taxes and cash flow. Know the basic types of financial management decisions and the role of the financial manager. Know the financial implications of the different forms of business organization. Understand the conflicts of interest that can arise between owners and managers. Understand the various types of financial markets and financial institutions. Finance is the study of how and under what terms savings (money) are allocated between lenders and borrowers. Three major forms in canada: sole proprietorship, partnership, corporation. In other countries, corporations are also called joint stock companies, public limited companies and limited liability companies. Chief financial officer (cfo: treasurer, capital investment, portfolios, capital structure, financial analysis, dividend policy, oversees cash management. A business owned by a single individual. Advantages: easiest to start, least regulated, single owner keeps all the profits, taxed once as a personal income.