Business & Finance homework help| Business & Finance homework help
Management is able to use corporate finance as a tool for making informed business decisions and ultimately guiding their organization in the right directions. You will learn about topics like financial strategies and goals, budgeting capital, risk assessment, goal-setting, and other important aspects of managing a business.
An LLC, C-Corporation (limited liability company), S-Corporation and Partnership are some of the organizational structures a company may have during its transition from startup to large corporation. Some advantages of an LLC is limited personal liability for owners and tax benefits, while disadvantages include more paperwork than other organizational structures and lack of continuity if there’s a change in ownership. C-Corporations can offer stock options to employees, as well as other tax benefits. However, they also have double taxation for dividends paid and are more complicated than LLCs.
S-corporations are able to avoid double taxation because the profits go directly through them onto their shareholders. But, they require additional documentation such as EIN number registrations and taxes that increase if there is a change in shareholder status. Partnerships allow two or more people to share the profits and offer some personal liability protection. However, each person can be held responsible for any actions of another partner if there are not proper contractual agreements.
Corporations go public via Initial Public Offering where they sell shares on the open market at predetermined rate; this allows companies to raise additional capital needed for expansion purposes while introducing additional stakeholders into their ownership structure which can help promote loyalty among investors/consumers & create larger network opportunities for new initiatives within industry sector. Agency problems refer to any action(s) taken by manager(s) within organization that doesn’t align with overall goals & objectives set forth by shareholders – harmfully affecting assets controlled by organization (such as funds). Corporate governance refers overarching system used govern executives actions&directions w/n organization in order ensure best interests of everyone involved met throughout life cycle operation – this includes board directors well internal protocols enforced ensure violations do not occur detriment anyone involved (provide checks balances).
Primary objective managers should focus on maximizing value long term versus short term gains; good corporate decision making should reflect ongoing values & morals organizations leadership team wants embody so best possible experience created consumers interacting product/service offered outside world inspired support internal teams reflecting same vision across platform offerings available public consumption promoted growth sustainability w/. The firm’s responsibility to society increases exponentially as it grows in size and benefits from overhead regulations that govern behavior. This ensures safety, quality, sustainability, economic security, and the satisfaction of all those who are affected. Companies need to learn how balance their ethical responsibilities with paper compliance. They must also demonstrate strong dedication for protecting resources. These rules can be used by companies to create sustainable business practices.