Ch 1: Corporate Finance and the Financial Manager Questions and Answers Grade A+ 2023

corporate finance - -the study of the relationship between business decisions and the value of the stock in the business -3 most important questions to answer when starting your own business. - -1. What long-term investments should you take on? That is, what lines of business will you be in and what sorts of buildings, machinery, and equipment will you need? 2. Where will you get the long-term financing to pay for your investment? Will you bring in other owners or will you borrow the money? 3. How will you manage your everyday financial activities such as collecting from customers and paying suppliers? - - - -stockholders - -owners -organization chart - -1. Board of directors 2. Chairman of the board and chief executive officer (CEO) 3. President and chief operations officer (COO) 4. Vice Pres marketing, Vice Pres finance (CFO), Vice Pres production 5.1. Treasurer 5.1.1. Cash manager & Credit manager 5.1.2. Capital expenditures & Financial planning 5.2. Controller 5.2.1. Tax manager & Cost accounting manager 5.2.2. Financial accounting manager & Data processing manager -chief financial officer/vice pres of finance (cfo) - -top financial manager - coordinates the activities of the treasurer and the controller