Prepare a discussion/talk about attachments no less than 2, discussion/talk for each chapter and no less than 100 words for each discussion/talk will ask to change word count at any time. Discuss/talk about what was interesting about chapter, summary of chapter or any kind of discussion from chapter.
Chapter 1 Questions
1. Describe the type of people who use the financial markets.
2. What is the purpose of financial management? Describe the kinds of activities that financial management involves.
3. What is the difference in perspective between finance and accounting?
4. What personal decisions can you think of that will benefit from your learning finance?
5. What are the three basic forms of business ownership? What are the advantages and disadvantages to each?
6. Among the three basic forms of business ownership, describe the ability of each form to access capital.
7. Explain how the founder of a business can eventually lose control of the firm. How can the founder ensure this will not happen?
8. Explain the shareholder wealth maximization goal of the firm and how it can be measured. Make an argument for why it is a better goal than maximizing profit.
9. Name and describe as many corporate stakeholders as you can.
10. What conflicts of interest can arise between managers and stockholders?
11. Figure 1.9 shows firm monitors. In your opinion, which group is in the best position to monitor the firm? Explain. Which group has the potential to be the weakest monitor? Explain.
12. In recent years, governments all over the world have passed laws that increased the penalties for executives' crimes. Do you think this will deter unethical corporate managers? Explain.
13. Every year, the media report on the vast amounts of money (sometimes hundreds of millions of dollars) that some CEOs earn from the companies they manage. Are these CEOs worth it? Give examples.
14. Why is ethical behavior so important in the field of finance?
15. Does the goal of shareholder wealth maximization conflict with behaving ethically? Explain.
16. Describe how financial institutions and markets facilitate the expansion of a company's business.
1 According to the IRS' SOI Tax Stats-Integrated Business Data for 2007, 78.21 percent of all businesses in the U.S. were sole proprietorships.
2 However, if you are the sole member of a domestic limited liability company (LLC, discussed below), you are not a sole proprietor if you elect to treat the LLC as a corporation.
3 For example, current federal regulations limit the number of shareholders in an S corporation to no more than 100.
4 See Book IV of his The Wealth of Nations.
5 See, for example, RaghuramRajan and Julie Wulf, "Are Perks Really Managerial Excess?" Journal of Financial Economics 79(1), 2006, 1-33.
6 In case you are wondering why the stockholders-who would be the eventual recipients of such "extra" free cash flow-wouldn't then have increased incentives to monitor, they would. But, considering that the typical bond sells for $1,000 or more while the typical share of stock sells for much less, and taking into account that bond ownership tends to be much more concentrated than stock ownership in many firms, ask yourself whether bondholders or stockholders are more likely to enjoy economies of scale in monitoring.
7 The Sarbanes-Oxley Act of 2002 was passed in response to a number of recent major corporate accounting scandals including those affecting Enron, Tyco International, and WorldCom. The goal of the act was to make the accounting and
Attachment:- Attachments.rar