公司理财原书第七版第一章导论.ppt

1-* Shareholders attempt to control managerial behavior by A) electing the board of directors who select management. B) the threat of a takeover by another firm. C) setting compensation contracts and tying compensation to corporate success. D) Both A and B. E) All of the above. 1-* Answer: E 1-* Financial markets are composed of A) capital markets and equity markets. B) capital markets and debt markets. C) capital markets and money markets. D) equity markets and money markets. 1-* Answer: C 1-* Forms of Business Organization The Sole Proprietorship(p10) A sole proprietorship is a business owned by one person. The Partnership: any two or more persons can get together and form a partnership. General Partnership: all partners agree to provide some fraction of work and cash and to share the profits and losses Limited Partnership: permit the liability of some of the partners to be limited to the amount of cash each has contributed to the partnership 1-* The Corporation A corpotation is a legal entity, it can have a name and enjoy many of the legal power of natural persons( enter into contracts and may sue and be sued) Advantages Liquidity and Marketability of Ownership: ownership can be readily transfererred Liability: limited liability Continuity of Existence: unlimited life Disadvantages Tax Considerations:double taxation 1-* A Comparison of Partnershipand Corporations(p13) ? Corporation Partnership Liquidity Shares can easily be exchanged. Subject to substantial restrictions. Voting Rights Usually each share gets one vote General Partner is in charge; limited partners may have some voting rights. Taxation Double Partners pay taxes on distributions. Reinvestment and dividend payout Broad latitude All net cash flow is distributed to partners. Liability Limited liability General partners may have unlimited liability. Limited partners enjoy limited liability. Continuity Perpetual life Limited life 1-* 1.4 Goals of the Corporate