Finance Week 1 Homework

Fi515 Week 1 Homework Assume that you recently gradatory and become however reported to work as an institutionalizeiture advisor at the brokerage immobile of Balik and Kiefer Inc. One of the trustys clients is Michelle DellaTorre, a professional lawn tennis player who has just come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to capture and market apparel she designs. She as well as expects to invest substantial amounts of coin through Balik and Kiefer. Mini Case DellaTorre is very bright, and she would like to understand in general terms what will happen to her m championy. Your boss has create the following sink of questions you must answer to ex- plain the U.S. financial system to DellaTorre. a. why is corporate finance authorised 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 advantages an d disadvantages of distributively form. Answer: many an(prenominal) companies begin as a ownership, which is an unorganised patronage have by one individual. Starting a business as a owner is easyone merely begins business operations after beating any demand city or state business licenses.

The proprietorship has terzettosome important advantages: (1) it is comfortably and inexpensively formed, (2) it is down to few authorities regulations, and (3) its income is not subject to corporate taxation but is taxed as part of the proprietors person-to-person income. However, the proprietorship also has three importa nt limitations: (1) it may 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 blank space!); 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, army it on our website: OrderCustomPaper.com

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