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    Week1 Tutorial FSDM1

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    jennifertranlinhchi

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    Week1 Tutorial FSDM1

    Uploaded by

    jennifertranlinhchi
    12 views2 pages

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    Week1-Tutorial-FSDM1

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    12 views2 pages

    Week1 Tutorial FSDM1

    Uploaded by

    jennifertranlinhchi

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Tutorial: Week-1

    Module: Financial Strategy and Decision Making 1

    SUMMARY COMPLETION

    The three fundamental forms of business are __________, _________, and


    __________. The sole proprietorship is owned by __________ person(s). And
    when few people get together and share profit of the business, they form a
    __________. The sole proprietorship and the partnership are easy to create with
    limited budget and have to pay taxes only on __________. To carry out large
    businesses, usually __________ are formed. A large corporation may have
    hundreds of thousands of __________, who become owners of the fraction of
    the firm by their fraction of investment. Corporations pay __________ which is
    much higher than the personal taxes. Corporations face two principal decisions:
    (1) __________ that is __________ and the (2) __________ that is _________.

    Shareholders who own the company are called __________ and


    management/directors who runs the company on behalf of the shareholders are
    called shareholder’s __________. Conflicts between shareholders and
    management’s objectives create __________. Shareholders’ main priority is
    maximizing their wealth by higher returns and increased share value, while
    management/directors may pursue objectives other than maximizing
    shareholders’ wealth. For example, a company buying an unneeded corporate
    jet. Other examples are:
    1. ___________________________________________________________.
    2. ___________________________________________________________.
    3. ___________________________________________________________.
    4. ___________________________________________________________.
    5. ___________________________________________________________.

    Shareholders want managers and directors to maximize their wealth, but it does
    not mean they want maximum profit through unfair means. The most successful
    corporations are those who not only satisfy their shareholders but also satisfy
    their employees and customers.
    FILL IN THE BLANKS
    Companies usually buy ________ assets. These include both tangible assets such
    as __________ and intangible assets such as ________. To pay for these assets,
    they sell ________ assets such as ________. The decision about which assets to
    buy is usually termed the ________ or ________ decision. The decision about
    how to raise the money is usually termed the ________ decision.

    Fit each of the following terms into the most appropriate space: financing, real,
    bonds, investment, executive airplanes, financial, capital budgeting, brand
    names.

    Q. Write a short essay of about 300 words on the following topic.


    In most large corporations, ownership and management are separated. What
    are the main implications of this separation?

    Please submit the written work on canvas (BUV’s learning management


    system) by October 6, 2024.

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