公司金融期末复习概要1.doc

Problem: 1.Function of financial market and list some financial intermediarie Answer1: contributing to higher production and efficiency in the economy Improving the well-being of consumers by allowing them to their purchases better Answer2: (1) facilitate investment and financing. (2) a reasonable guidance of capital flow, which contributes to the concentration of capital and promotes the transfer of high-efficiency units. (3) convenient and flexible turnover of funds. (4) to achieve risk diversification, reduce transaction costs. (5) are conducive to enhancing the flexibility of macro-control. (6) to help strengthen economic ties between regions and countries. Intermediaries: Banks Building societies Credit unions Financial advisers or brokers Insurance companies Collective investment schemes Pension funds 2.Why profit maximization is not an ideal corporate finance objective? The primary goal of corporate finance is maximize or increase shareholder value not profit (2)To a skilled accountant, however, a decision that increases profits under one set of accounting rules can reduce it under another. (3)Accounting profits are not necessarily the same as cash flows. (4)The problem with profit maximization as a goal is that it does not tell us when cash flows are to be received. (5)Profit maximization ignores the uncertainty or risk associated with cash flows. 总：For the fact that a firm cannot survive with mere profit maximization ,but must increase long-term security through investment and meeting shareholder expectations. This will increase their productive capacity for the future as well as encourage the risky capital investment of the shareholders. 3.Characteristics of business organization: sole proprietorship: A business owned and managed by a single individual. Features: Cheapest to form. no formal charter, few government regulations Pays no corporate income taxes Unlimited liability for business debts and obligat