Finance Week 1 Homework

Fi515 Week 1 Homework Assume that you recently gradual and become however reported to work as an enthronement advisor at the brokerage immobile of Balik and Kiefer Inc. One of the solids clients is Michelle DellaTorre, a professional lawn tennis player who has righteous come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to stimulate and market apparel she designs. She as well as expects to assign substantial amounts of coin through Balik and Kiefer. Mini Case DellaTorre is very bright, and she would like to understand in general terms what allow happen to her m championy. Your boss has create the following correct of questions you must answer to ex- plain the U.S. financial system to DellaTorre. a. wherefore is corporate finance classical 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 advant ages and disadvantages of distributively form. Answer: numerous companies begin as a ownership, which is an unorganised line possess by one individual. Starting a business as a owner is easyone merely begins business operations after ascertaining any demand city or state business licenses.

The proprietorship has leadsome important advantages: (1) it is comfortably and inexpensively formed, (2) it is undefended to few authorities regulations, and (3) its income is not subject to corporate taxation but is taxed as part of the proprietors face-to-face income. However, the proprietorship also has three i mportant limitations: (1) it whitethorn be d! ifficult 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 station!); 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, run it on our website: OrderCustomPaper.com

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