Fundamentals of Corporate Finance, Student Value Edition
3rd Edition
ISBN: 9780133576863
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Question
Chapter 1, Problem 6CC
Summary Introduction
Organization:
An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships,
Corporation:
A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.
The financial managers take care of the financial health of an organization. They make the important financial decisions of the company on behalf of the shareholders since it is not feasible for the owners to have direct control over the huge firms.
To Identify:
The jobs that a financial manager does.
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Chapter 1 Solutions
Fundamentals of Corporate Finance, Student Value Edition
Ch. 1 - Prob. 1CCCh. 1 - Prob. 2CCCh. 1 - Prob. 3CCCh. 1 - Prob. 4CCCh. 1 - Prob. 5CCCh. 1 - Prob. 6CCCh. 1 - Prob. 7CCCh. 1 - Prob. 8CCCh. 1 - Prob. 9CCCh. 1 - What is the basic financial cycle?
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