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, partnerships , limited liability companies, and corporations. 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. Financial Manager 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. Stock Market The stock market is also called as stock exchange or bourse. It is an organized market which allows the traders to buy and sell stocks of different companies. These stock markets also play a role of providing liquidity for the shares of the company and also determine the market price of those shares. To Identify: The advantages that a stock market provide to corporate investors and financial managers.

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Chapter 1, Problem 8CC

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, partnerships, limited liability companies, and corporations.

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.

Financial Manager

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.

Stock Market

The stock market is also called as stock exchange or bourse. It is an organized market which allows the traders to buy and sell stocks of different companies. These stock markets also play a role of providing liquidity for the shares of the company and also determine the market price of those shares.

To Identify:

The advantages that a stock market provide to corporate investors and financial managers.

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