2. Topics Covered
What Is A Corporation?
The Role of The Financial Manager
Who Is The Financial Manager?
Separation of Ownership and Management
3. Corporate Structure
Sole Proprietorships
Unlimited Liability
Personal tax on profits
Partnerships
Limited Liability
Corporations Corporate tax on profits +
Personal tax on dividends
4. Role of The Financial Manager
(2) (1)
Firm's Financial Financial
(4a)
operations manager markets
(3) (4b)
(1) Cash raised from investors
(2) Cash invested in firm
(3) Cash generated by operations
(4a) Cash reinvested
(4b) Cash returned to investors
5. Role of The Financial Manager
Common Finance Terminology
-Real assets
- Financial assets / Securities
- Capital markets and financial markets
- Investment / capital budgeting
- Financing
6. Who is The Financial Manager?
Chief Financial Officer
Treasurer Controller
7. Ownership vs. Management
Difference in Different Objectives
Information
Managers vs.
Stock prices and stockholders
returns
Issues of shares and Top mgmt vs.
other securities operating mgmt
Dividends Stockholders vs.
Financing banks and lenders