Mini case 1
The purpose of this assignment is to explain core concepts related to the U.S. financial system.
Read the Chapter 1 Mini Case on pages 48-49 in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a through d.
APA format is not required, but solid academic writing is expected.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
a. Why is corporate finance important to all managers?
b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
c. How do corporations go public and continue to grow? What are agency problems? What is corporate governance?
d. What should be the primary objective of managers?
(1) Do firms have any responsibilities to society at large?
(2) Is stock price maximization good or bad for society?
(3) Should firms behave ethically?