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Fin515 Week 1 Homework

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Fin515 Week 1 Homework
10 July 2012
Managerial Finance FIN515
Professor David Felsberg

DellaTorre Mini Case
Corporate finance is important to all managers regardless of the industry they are in due to the fact that it deals with the strategic financial issues associated with achieving goals such as how the corporations should raise and manage its capital , what investments the firm should make, what portion of profits should be returned to shareholders in the form of dividends, and whether it makes sense to make further investments such as merging with or acquiring another company.
Companies are fall into one of three categories; a proprietorship or sole proprietorship is a business owned by one individual. A partnership exists when two or more persons associate to conduct a business. In contrast, a corporation is a legal entity created by a state. In our current economic system corporation share some of the same benefits as individuals; although Sarbanes Oxley law has made some significant changes, corporations are still viewed as separate and distinct from its owners and managers. In a limited partnership, limited partners’ liabilities, investment returns and control are limited, while general partners have unlimited liability company (LLC), combines the limited liability advantage of a corporation with tax advantage of a corporation with tax advantages of a partnership. A professional corporation (PC), known is some states as a professional association (PA), has most of the benefits of incorporation but the participants are not relieved of professional (malpractice) liability.
Corporations have a couple of different options when they opt to go public. The most commonly utilized method of taking a corporation public is an Initial Public Offering (IPO). It involves registering your stock with the Securities and Exchange Commission in order to sell your shares to the general public. Small Corporate Offering Registration is a more economical and simpler alternative to



References: Historical Gas Prices, Retrieved on March 9,2012 from , Retrieved from www.atlantagasprices.com/GasPriceSearch.aspx Markets Are Efficient, Chapter 1, Core Economics, Gerald W. Stone, 2008 Coffee Buffs from Amazon to Rio Poise Brazil to Top U.S., Retrieved on March 14, 2012, Retrieved from http://www.businessweek.com/news/2012-03-13/coffee-buffs-from-amazon-to-rio-poise-brazil-to-top-u-dot-s-dot

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