Finance Week 1 Homework

Fi515 Week 1 Homework Assume that you recently calibrated and become however reported to work as an enthronisation advisor at the brokerage immobile of Balik and Kiefer Inc. One of the sures clients is Michelle DellaTorre, a professional lawn tennis player who has sightly come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to induce and market apparel she designs. She as well as expects to range substantial amounts of coin through Balik and Kiefer. Mini Case DellaTorre is precise bright, and she would like to understand in general terms what provide happen to her m championy. Your boss has create the following stack of questions you must answer to ex- plain the U.S. financial system to DellaTorre. a. why is corporate finance all important(p) to alone managers? b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advan tages and disadvantages of distributively form. Answer: many a(prenominal) companies begin as a ownership, which is an unorganised bank line owned by one individual. Starting a business as a possessor is easyone merely begins business operations after hold backing any demand city or state business licenses.

The proprietorship has tripletsome important advantages: (1) it is tardily and inexpensively formed, (2) it is field of honor to few authorities regulations, and (3) its income is not subject to corporate taxation but is taxed as part of the proprietors personal income. However, the proprietorship also has three important limitations: (1) i! t whitethorn be difficult for a proprietorship to obtain the capital needed for growth; (2) the proprietor has un restrain personal liability for the businesss debts, which earth-closet result in losses that exceed the money invested in the company (creditors may even be able to withdraw a proprietors house or separate personal property!); and (3) the life of a proprietorship is limited to the life of its founder. For these three reasons, sole proprietorships...If you want to get a full essay, align it on our website: OrderCustomPaper.com

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