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.
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.
Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
EBK FUNDAMENTALS OF CORPORATE FINANCE
- You invest $2,000 in a savings account that pays 4% interest compounded annually. How much will you have after 2 years? A) $2,080B) $2,160C) $2,081.60D) $2,000steps!arrow_forwardYou invest $2,000 in a savings account that pays 4% interest compounded annually. How much will you have after 2 years? Need helparrow_forwardA company issues 1,000 shares at $25 each. What is the total capital raised? A) $2,500B) $25,000C) $250D) $2,000arrow_forward
- You invest $2,000 in a savings account that pays 4% interest compounded annually. How much will you have after 2 years? A) $2,080B) $2,160C) $2,081.60D) $2,000need help!!arrow_forwardIf the present value of a future payment of $10,000 in 5 years is $7,835, what is the implied annual discount rate (rounded)? A) 5%B) 6%C) 7%D) 8%explanationarrow_forwardIf the present value of a future payment of $10,000 in 5 years is $7,835, what is the implied annual discount rate (rounded)? A) 5%B) 6%C) 7%D) 8%need step by steparrow_forward
- If the present value of a future payment of $10,000 in 5 years is $7,835, what is the implied annual discount rate (rounded)? A) 5%B) 6%C) 7%D) 8%Need helparrow_forwardIf the present value of a future payment of $10,000 in 5 years is $7,835, what is the implied annual discount rate (rounded)? A) 5%B) 6%C) 7%D) 8%arrow_forwardYou invest $2,000 in a savings account that pays 4% interest compounded annually. How much will you have after 2 years? A) $2,080B) $2,160C) $2,081.60D) $2,000help me.arrow_forward
- No ai gpt..??? 9. If a company's current ratio is 2 and its current liabilities are $300,000, what are its current assets?arrow_forwardYou invest $2,000 in a savings account that pays 4% interest compounded annually. How much will you have after 2 years? A) $2,080B) $2,160C) $2,081.60D) $2,000arrow_forwardno ai ...??? Gpt 10. If a stock's price increases from $30 to $45, what is the percentage change?arrow_forward
Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education