CHAPTER 1 QUESTIONS 1-6 (CRITICAL THINKING QUESTIONS) MUST ANSWER WITH CLEAR KNOWLEDGE OF BUSINESS FINANCE CHAPTER 2 QUESTIONS 1-4 NEEDS EXCEL WORK (ALL WORK MUST BE SHOWN AND EXCEL FUNCTIONS NEED TO...

CH 1 Questions (1-6)
    1.1        Three Types of Financial management decisions:
            Capital Budgeting        An instance of a long capital decision will be the procurement of equipment for production.
                    This is significant because it impacts the company's long-term profitability.
                    Short-term investment is linked to cash levels, inventories, etc. These initiatives have an effect on day-to-day company operation.
            Capital Structure        Long-term and short-term decisions. The operations of collecting capital, investment in assets and providing dividends
                    to investors are the core financial activities or financial policies of a corporation.
            Working Capital Management            Modifying the firm's credit collection policy with its customers.
    1.2        Four primary disadvantages of the sole proprietorship and partnership forms of business:
            Sole proprietorship:        1    Owners are entirely responsible for this. If company obligations become daunting, the assets of the individual owner would be compromised.
                    2    Self-employed taxes apply to sole proprietorships
                    3    Company continuity shall cease with the death or resignation of the person.
                    4    It's hard to raise money.
            Partnership:        1    Emotional issues
                    2    Lack of Stability
                    3    The business has no independent legal status
                    4    Unlimited Liability
            A business must pay taxes at the organisational stage – independently from its members. The owners would then have to pay taxes at the personal basis, ending in double taxation.
            The benefit of Sole Proprietorship is the so-called "pass through taxation." Sole Proprietorship revenue "passes into" the right to the actual tax return of the owner.
            This implies no reversion on income tax and no additional taxes!
            Less Regulation and Simpler
    1.3        The key drawback of the corporation structure being the double taxation of distributed profits and dividends to owners.
            Two advantages of corporate firm could be Limited obligations and potential to raise funds
    1.4        Treasurer's office and the Controller's office are the two distinct group
            Treasurer office focus on corporate finance.
    1.5         Enhancing the present market value (share price) of the company's equity (whether its publicly traded or private)
    1.6        In the corporate system of ownership, the shareholder is the owner of the company.
            The shareholders...