财务管理基础斯坦利布洛克chapter (1)

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1、FinancialManagement.2013.SouthChinaUniversityofTechnologyFOUNDATIONSOFFINANCIALMANAGEMENTPART1INTRODUCTIONLecturer:Renee,RenGu1WhatisCorporation?1.1FormsofOrganizationSoleproprietorshipPartnershipCorporationFirstType:SoleProprietorshipAdvantagesDisadvantagesEasiesttost

2、artOwnersmustbearallcostsLeastregulatedNootherstoshareburdenoraddexpertiseSingleownerkeepsalltheUnlimitedliabilityfordebtsprofitsandmalpracticeTaxedonceaspersonalDifficulttosellownershipincomeinterestSecondType:PartnershipAdvantagesDisadvantagesRelativelyeasytostartEac

3、hpartnerhasunlimitedliabilityfordebtandmalpracticePooledexpertiseandPartnershipdissolveswhenresourcesonepartnerdiesorwishestosellMorecapitalavailableDifficulttotransferownershipIncometaxedonceasShareprofitswithpartnerspersonalincomeThirdtype:CorporationAdvantagesDisadv

4、antagesLimitedliabilityfordebtsandSeparationofownershipandmalpracticemanagementSeparationofownershipandDoubletaxationmanagement(incometaxedatthecorporaterate;dividendstaxedatpersonalrate)EasiertoraisecapitalResponsibletoshareholdersTransferofownershipiseasyRequiresanda

5、ttorneytoestablish2WhatisFINANCIALMANAGEMENT?2.1Definition•Takingacommercialbusinessasthemostcommonorganizationalstructure.•Financialmanagemententailsplanningforthefutureofapersonorabusinessenterprisewiththeaimofensuringapositivecashflow.Corporation’sFinancialManagemen

6、t2.2StructureoftheKNOWLEDGECorporatefinanceincludes…2.3Whoisfinancialmanager?Functionsoffinancialmanager:toallocatefundstocurrentandfixedassetstoobtainthebestmixoffinancingalternativestodevelopanappropriatedividendpolicywithinthecontextofthefirm’sobjectives.Thesefun

7、ctionsareperformedonaday-to-daybasisaswellasthroughinfrequentuseofthecapitalmarketstoacquirenewfunds.CorporationFinancialFinancialOperationsMarketsManagers(RealAssets)(Investors)Financialmanagerstrytoanswersomeorallofthesequestions:•Capitalbudgeting–Whatlong-terminvest

8、mentsorprojectsshouldthebusinesstakeon?•Capitalstructure–Howshouldwepayforourassets?–Shouldweusedebtorequity?•Working