In: Accounting
2. Sole Proprietorships and Partnerships. What are the four primary disadvantages to the sole proprietorship and partnership forms of business Page 19organization? What benefits are there to these types of business organization as opposed to the corporate form?
3. Corporations. What is the primary disadvantage of the corporate form of organization? Name at least two of the advantages of corporate organization.
4. Corporate Finance Organization. In a large corporation, what are the two distinct groups that report to the chief financial officer? Which group is the focus of corporate finance?
5. Goal of Financial Management.What goal should always motivate the actions of the firm’s financial manager?
2. Sole proprietorship and Partnerships:
Four Disadvantages-
Benefits of this form of business over corporate form:
3. Corporations:
What is the primary disadvantage of corporate form of business?
It requires complex incorporation process and requires regular return filings to IRS (separately from personal returns). Decision making and effective control lies with the shareholders jointly instead of a single or few persons.
Name two advantages:
4. Corporate Finance organisation: In large corporates, what are the two distinct groups that report to the CFO? Which group is the focus of corporate finance?
In large corporates, the two distinct groups that report to the CFO are;
The finance and accounting group is the focus of the corporate finance as it is this group that oversees the day to day financing and operation of the organization.
5. Goal of Financial management: What goal should always motivate the actions of the firm’s financial manager?
The finance manager should focus on ensuring;