Principles of Finance 101 assignment 1
The Role of the Financial Manager
دور المدير المالي
Three Key Financial Decisions
Choose the long-term assets that will yield
The Greatest Net Benefits for the firm
.
اختر األصول طويلة األجل التي ستحقق أكبر فوائد صافي
.للشركة
decide which Long-term Assets to acquire
تقرر أي األصول طويلة األجل للحصول عليها
Capital Budgeting
الميزانية الرأسمالية
Finance assets with the optimal Combination
of Short-term Debt, Long-term Debt, And
Equity.
قم بتمويل األصول من خالل الدمج األمثل للديون قصيرة
.األجل والديون طويلة األجل واألسهم
decide how to Pay For Short-term and
Long-term Assets
لتحديد كيفية الدفع لألصول قصيرة األجل وطويلة األج
Financing
تمويل
Adjust Current Assets And Current
Liabilities as needed to promote Growth In
Cash Flow.
ضبط األصول الحالية والخصوم الحالية حسب الحاجة
.لتعزيز النمو في التدفق النقدي
decide how to Manage Short-term
Resources and Obligations
تيقرر كيفية إدارة الموارد قصيرة األجل وااللتزاما
Working Capital
القوى العاملة
➢ Poor Decisions about capital budgeting, financing, or working capital May Lead
To Bankruptcy or Business Failure
شل العملقد تؤدي القرارات الرديئة المتعلقة بميزانية رأس المال أو التمويل أو رأس المال العامل إلى اإلفالس أو ف➢
Basic Forms of Business Organization
Business Structure
DisadvantagesAdvantagesDefinationType
1) owner’s personal assets at Risk
2) owner’s Unlimited liability for
firm Obligations
3) Equity Only from owner or
business profit
4) business income taxed as Personal
Income
5) Difficult To Transfer ownership
1) Easiest to Create
2) Easiest to Control
3) Easiest to Dissolve
4) Right To All Profit
Owned by a Single
Person who is
financially
Responsible:
A. Actions
B. Obligations
1. Sole
Proprietorship
Disadvantages VS Sole
Proprietorship
Advantages VS Sole
Proprietorship
A business owned by More Than One Person; one or more of them Financially Responsible for the Actions and Obligations of the business
2. Partnership
1) Shared control & profit
2) Harder to dissolve
1. Limited Protection of
owners’ personal Assets
2. owners’ Limited Liability
For Firm Obligations
3. More Sources of Equity
& Expertise
Business Structure
DisadvantagesAdvantagesDefinationType
1. Most Difficult And
Expensive to Establish
2. Dilutes Individual
Control over the firm
3. overall Higher Taxes
on Income For
Shareholders
1) Protects personal
Assets
2) No shareholder
Liability for
business
3) easiest to Change
Ownership
1) Greatest access to
Sources Of Funds
A business owned by more than one
person; None Of Them Financially
Responsible For The Actions And
Obligations of the business. The
Corporation Is Responsible For Its
Obligations And Actions.
3. Corporation
➢ All have The Limited liability Of A
Corporation
➢ All have the Tax Advantage Of A
Partnership.
A. Limited Liability Partnerships
(LLPs)
B. Limited Liability Companies
(LLCs)
C. Professional Companies (PCs)
4. Hybrid
Forms of
Business
Organization