Fi515 Week 2 Assignment

A. Why is corporate finance crucial to all managers? It is crucial because it provides skills managers need to identify and select the corporate strategies and individual projects that affix value to its firm. Corporate Finance also forecast the supporting requirements of the company and devise strategies for acquiring those funds. B. Describe the organizational forms a company might have as it evolves from a start-up to a major(ip) quite a little. List the advantages and disadvantages of each form. The organizational forms be mend proprietorships, coalitions, and federations. There ar also hybrid forms which ar express mail partnership, the extra liability partnership, the professional corporation, and the s corporation. The advantages of a proprietorship are: it is easily and inexpensively formed, it is stamp down to few government regulations, and the trading pays no corporate income tax incomees. The disadvantages are: it is dif ficult for it to obtain rotund sums of capital, the proprietor has un limit ad hominem liability for the business debts, and the living of the business organized is restrict to the life of the individual who created it. The major advantage of a partnership is its low cost and alleviate of formation.

The disadvantages are: unlimited liability, limited life of the organization, obstacle of transferring willpower, and difficulty of raising large amounts of capital. The tax treatment of a partnership is similar to that for proprietorships, which is often an advantage. The corporation has three major adva ntages which are: unlimited life, easy tra! nsferability of ownership interest, and limited liability. Disadvantages of a corporation are: corporate bread may be subject to double taxation, and setting up a corporation and file the many required tell apart and federal reports is more multiplex and time-consuming. In a limited partnership, the limited partners are apt(predicate) only for the amount of their investment in the partnership;...If you lack to get a full essay, modulate it on our website: OrderCustomPaper.com

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