Professional Documents
Culture Documents
LEARNING OBJECTIVES
able to:
finance.
Learning Objectives: 1 - 1
• Describe the advantages and disadvantages of
Learning Objectives: 1 - 2
that they do not.
Learning Objectives: 1 - 3
LECTURE SUGGESTIONS
class.
Lecture Suggestions: 1 - 4
other goals, hence that it is useful to tie
mid-term exam.
on calculators.
periods)
Lecture Suggestions: 1 - 6
ANSWERS TO END-OF-CHAPTER QUESTIONS
and time-consuming.
themselves uncompetitive.
maximization.
interests.
future.
higher.
accounting performance.
of management.
d. Bondholders can take the following
values:
agreements.
possible exploitation.
entirely.
detrimental to shareholders.
it operated as a corporation.
CINTEGRATED CASE
Take a Dive
IN FINANCE.
SHAREHOLDERS.
TO FINANCE MAJORS?
CAPITAL MARKETS,
FINANCIAL INSTITUTIONS;
(2) INVESTMENTS, WHICH FOCUSES ON THE
MANAGEMENT OF FIRMS.
DIVIDENDS.
MANAGING RISK.
C. WHAT ARE THE MOST IMPORTANT FINANCIAL
BUSINESS ORGANIZATION?
ANSWER: [SHOW S1-7 HERE.] THE THREE MAIN FORMS
DISADVANTAGES?
ADVANTAGE.
MAJOR ADVANTAGES:
PARTNERSHIP.
E. WHAT IS THE PRIMARY GOAL OF THE
CORPORATION?
STOCK.
SOCIETY AT LARGE?
FOR SOCIETY?
CORPORATION?
(THROUGH MANAGERS).
INTERESTS?
ANSWER: [SHOW S1-13 HERE.] TO REDUCE AGENCY
BONDHOLDERS?
SHAREHOLDERS.
MAXIMIZING PROFIT?
THEIR RISKINESS.
OF CASH FLOWS?