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Ans1/advantage;

1/ Corporations have a ready access to major sources of loans and advance e.g. banks and financial institutions etc. 

2/A corporation can expand its business by issuing its shares to public to whereas partnership and proprietorship cannot issue its shares. 

. 3/A large number and variety of people in a corporation having different expertise, can expand and develop the business more efficiently and effectively than any other mode of business

 

4/Corporation involved in manufacturing can purchase raw materials on short term as well as long term credit and at cheapest rates as suppliers place a significant reliance on corporations regarding their payments

 5/Until the shareholder decides to dissolve it or merge with another business, the corporations continue to exist

Disadvantage;

1/To incorporate the corporation has to incur several formation costs, so it is difficult for small business people to form a corporation. 

2/The formalities of organizing and running a corporation must be followed properly in order to receive the benefits of being a corporation.  

3/The corporate formalities involves paperwork consists of like Reports and tax returns must be compiled and filed in a timely basis, business bank accounts and records must be maintained and kept separate from personal accounts and assets,

records must be kept of corporate actions etc.

 

4/A corporation can be dissolved voluntarily or involuntarily. A corporation's officers and directors are charged with responsibility for dissolving the corporation, includes gathering corporate assets, paying creditors and outstanding claims, and distributing remaining assets to shareholders.

 

5/Double tax consequences faced by a corporation i.e. once when the company makes its profit and a second time when dividends are paid to shareholder

Ans2/

(1)Making Investment Decisions

· The financial manager must weigh the costs and benefits of each investment or project

· They must decide which investments or projects qualify as good uses the money stockholders have invested in the firm

(2) Making Financing Decisions

· The financial manager must decide whether to raise more money from new and existing owners by selling more shares of stock (equity) or to borrow the money instead (bonds and other debt)

(3) Managing Short-Term Cash Needs

· The financial manager must ensure that the firm has enough cash on hand to meet its obligations from day to day

· This job is also known as managing working capital

·

Ans3/

Corporation is a legal entity, it will not act on its own. The shareholders are the real owners of the corporation, they elect the board of directors to run the business. The board of directors have the ultimate decision-making authority in the corporation. The shareholders have voting power to vote on any particular transaction in the corporation, it may be of new investment proposal or expansion decision or merger with the other corporation or in electing the board of directors etc., Shareholders voting is compulsory for taking any new decision, if the shareholders are not interested in any one particular transaction then they will not vote for the approval, so the action cannot be initiated without obtaining minimum number of votes.

Ans5/

1/Move funds from savers to borrowers

2/Move funds through time

3/Help spread out risk-bearing