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Chapter 1: Introduction To Corporate Finance
Chapter 1: Introduction To Corporate Finance
Slides by
Matthew Will Chapter 1
Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000
1- 2
Topics Covered
What Is A Corporation?
The Role of The Financial Manager
Who Is The Financial Manager?
Separation of Ownership and Management
Financial Markets
Corporate Structure
Sole Proprietorships
Partnerships
Corporate Structure
Sole Proprietorships
Unlimited Liability
Personal tax on profits
Partnerships
Corporate Structure
Sole Proprietorships
Unlimited Liability
Personal tax on profits
Partnerships
Corporations
Corporate Structure
Sole Proprietorships
Unlimited Liability
Personal tax on profits
Partnerships
Limited Liability
Corporations Corporate tax on profits +
Personal tax on dividends
(1)
(2) (1)
(2) (1)
(3)
(2) (1)
(3)
(2) (1)
(3) (4b)
Chief
ChiefFinancial
FinancialOfficer
Officer
Chief
ChiefFinancial
FinancialOfficer
Officer
Treasurer Comptroller
Financial Markets
Money
Primary
Markets
Financial Markets
Money
Primary
Markets
Secondary
Markets
Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000
1- 17
Financial Markets
Money
Primary OTC
Markets Markets
Secondary
Markets
Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000
1- 18
Financial Institutions
Company
Obligations
Funds
Intermediaries
Banks
Insurance Cos.
Brokerage Firms
Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000
1- 19
Financial Institutions
Intermediaries
Obligations
Funds
Investors
Depositors
Policyholders
Investors
Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000