MBA Assignment

Surname 1

Name:

Lecturer

Course:

Date:

Assignment

Q1. A financial manager is always expected to understand all the five vital aspects in finance

such as (financing, capital budgeting, financial management, corporate governance and risk

management) as they impact in one way or the other in his/her actions. Often, the manager’s key

duties are focused towards fundraising and picking of venture extends, they also have to put

some concentration towards capital markets as well as ideal levels. This makes them to have the

ability to monitor any risks of the business alongside the administration of the partnership.

Recently, the risk management has become very important to prevent high potential losses to

companies.

Q2. The most common types decisions a finance manager has to make includes investment

decisions, financing decision, and dividend decision. The investment decision often includes the

choices made to additional investment in the current fixed assets. Financing decisions includes

the choices by manager to either seek equity or debts, purposely for expanding operations, while

divided decisions included ideas to distribute dividends and to which percentage.

Q3.

Sole proprietorship

Advantages of sole proprietorship include cheaper cost of establishment, easy

management, and fewer government regulations and lastly, the return is solely enjoyed by the

Surname 2

owner. However, it is also difficult to raise capital and completely be responsible when in sole

proprietor operation.

Partnership firm

Some of the advantages include ease of raising capital and establishment as compared to

corporation as well as easy sharing of profits among partners. The main disadvantage is that the

partners are cooperatively accountable for all operations.

Corporation

It is easy to raise capital and the liabilities are limited to the worth of the stock held by a

shareholder. This kind of business is however expensive to establish and is closely monitored by

the authorities.

Legal liability often leads to agency problem. This is because the partners involved are

not liable for their fellows. For instant, the agent is usually authorized to conduct certain acts by

the principal or on his behalf. Consequently, the principle is often bound by the agent’s acts.

Therefore, the most suitable type of business for a startup would be sole proprietor or legal

liability partner.

Q4. Such scenarios occur because the capital market connects the deficit economy with the

economic surplus units. This provides the small firms with both the short and long-term capital

to meet their operational demands and supply. Once established, they concentrate more on the

organized capital markets.

Surname 3

Q5. The stock market listing is very important objective in that it is capable of meeting both

the new and future capital requirement, make bane band equity as well as provide a platform for

buying and selling shares among other vital purposes.

Q6. In most cases, there is no much significant difference between profit maximization and

shareholder wealth maximization. The two are consistent in that if the organizations profit

increases so does the price of the share since it reflects the financial position of the organization.

Q7. Corporate stakeholders refer to those individual(s) who can be affected by the business

operation at any given time. Often, stockholders are considered are stakeholders. Stakeholder

wealth maximization describes the increment in the company’s share price while shareholders

wealth preservation describes the protection of a company’s assets such as employee turnovers.

Q8. Agency cost is a scenario whereby business owners try to make their business to grow by

maximizing on the shareholders wealth while business managers advocating for improved

working environments and salary. Agency problem, on the other hand, refers to the state

whereby agents abuse the company assets for luxurious lifestyles. This leads to malpractices,

integrity issues and overcharging clients hence affects the shareholders wealth maximization.

However, these acts can be minimized through posing strict measures, educating the

work staff on management principles and splitting the business owners from the business

managers

Q9. Ethics do play an important role to the financial managers since it enables a foundation

block for developing trust, understanding as well as defining objectives making wealth

maximization possible.

Surname 4

Yes the establishment of ethical policies, compliances ensures ethical behaviors among

employees. This is because the ethical behavior requires a natural personality to be compiled to a

system guided by certain policies of a particular organization. As such, the employees make an

effort in their input and successfully adhere to the execution of the policies.

Q10. First, I would try and ensure that my private firm gets to the NY stock exchange.

Thereafter, I will concentrate my effort to track the asset report. In addition, I will make a speech

urging my representatives to double their efforts to improve any finance related position.

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."

Place new order. It's free, fast and safe

Our customers say

Jeff Curtis

Ian McGregor

Shannon Williams