Financial_Management_Functions_&_Goas

Assignment Financial Management Functions & Goals Due: Week 1, Day 4 (Thursday) Please use this document to answer the eight questions below. For matching and multiple choice questions, please be sure to clearly indicate your answers. When you have completed your answers, please save this document with your work, using your name as the file name. Submit your complete assignment to the Assignment link. 1. List five careers in the finance field. Corporate Financial Officer, Banker, Stockbroker, Financial analyst, Investment Banker 2. Please indicate which of the below characteristics applies to each form of business by placing the letter (of the characteristic) next to the form of business. Each characteristic may be used for more than one of the forms of business. | Form Of Business |Characteristics | |Sole Proprietorship |D |E |F |G | |Partnership |C |F |G | | |Corporation |A |B |E |G | |Subchapter S Corporation |A |B |E |G | | | |Characteristics | |A |Accounts for 83% of US sales. | |B |Shareholders have limited liability. | |C |Multiple partners make it easier to raise capital. | |D |Accounts for 72% of businesses. | |E |Potential double taxation. | |F |Owner(s) have unlimited liability. | |G |Is a legal entity and can be sued. | 3. The Sarbanes Oxley Act did NOT ANSWER IS “C” A. Establish the Public Company Accounting Oversight Board. B. Control the quality of audits. C. Assign government auditors to each publicly traded company. D. Set roles on independence of auditors. E. All of the above are correct. 4. What is the difference between financial capital and real capital' Financial capital is the money provided by lenders to start up the business Real capital is using the financial capital to purchase what is needed to make the product you are going to sell. Example: machinery and services 5. What is the difference between a primary and secondary market' Primary market is where the company sells stocks Secondary market is where where stocks are traded without a company involvement 6. In three to five sentences, what was/is the impact of the internet on the modern economy' There are competivie cost pressures. Smaller businesses cannot compete. They either have to close up or consolidate with another company. Major markets had to go public to use their shares for mergers & acquisitions. Brokerage firms had to join in and let investors trade on the internet. The Internet is a huge business making it easier for the public to conduct any business they want or need to. One down side is it is making us lazier in my opinion. 7. In three to five sentences, what can be done to maximize shareholder wealth' A compay could provide stock options as an incentive to their employees. This will keep them working harder for themselves to profit. The company must have a powerful brand name that manufactures a very needed product in a competitive world. Other companies will either invest or purchase the product. 8. In three to five sentences, how do management decisions impact shareholder wealth' Mismanagement can cause investors to lose their money. The Sarbanes-Oxley Act was developed so this cannot happen. Even though I believe it hampers some of my job duties, I agree with it. Businesses have to adhere to strict policies because they are using other people’s money. Where I work, each department has certain Screens they go into in our business system and other departments do not have access to them.