Case Solutions Fundamentals of Corporate Finance Ross, Westerfield, and Jordan 9th Edition

Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.

This four-credit course is for students who major in finance. By the end of this course,

Even though there are also many advantages of a sole proprietorship, there are other alternative forms of business organizations that I would recommend, such as a general partnership. A general partnership is a form of business organization that comes into existence when two or more persons carry on business together with a view to a profit. In order to form a general partnership, a series of criteria must be met and understood such as; the partnership must register its name and obtain a business license, a partner cannot be employed by the partnership, all benefits of the partnership business must be received by the partners directly, all partners are personally liable for all the obligations of the business.

Enclosed is the Justification Report covering information related to different types of entities that could be chosen to establish a business. Furthermore, the report explains in full details the advantages and disadvantages of each business entity, and how those factors could fulfill the needs of each particular individual.

The sole proprietorship is the simplest form of “business association” we will examine. It is perhaps a bit odd to describe it as a form of “association” given that the “sole” proprietor will be the only “equity” investor and thus doesn’t “associate” with anyone else as a co-equity investor. However, there will almost invariably be “associations” that the sole proprietor will have in order to carry on the business. These can include associations with employees, agents, lenders (such as a bank) and trade creditors. This chapter looks at the structure of the sole proprietorship, its formation, legal status, name registration requirements, funding, management, and dissolution. It also

Personal Liability: With this sort of business entity, I would be protected from personal liability for business decision or actions of the

When the sole proprietor incorporates, it gives advantages and disadvantages. The advantage is that the owner can sales shares to investors and raise capital. Moreover, with an incorporated business the owner and the employees can benefit from health insurance, workers compensation, insurance against accidents, etc. Another advantage of incorporating the business is that it guarantees the safety of the personal assets. For example, if there is an accident or the business defaults on the bank loan, only the business will be liable. The personal assets such as your house or car will not be

I have a quick question that I hope you can answer: Is it customary to have a Board President act as "purchasing agent" for a condo association, using a personal credit card to buy building, maintenance, and landscaping equipment and supplies?

Engs Commercial Finance is a large commercial finance company who needed support for their Pardot org and desired best practices for optimal use. They were already using Salesforce.com so improving their Pardot engagement was priority. We recommended and implemented our Pardot Quickstart package which encompassed all the ins and outs of the system for the Marketing and Sales team. They needed best practices in particular with regards to landing pages and email reporting. We also did some custom integrations with their existing Salesforce Campaigns which needed to be segmented to Pardot lists. They’ve recommended Pardot & CRMCulture to other Finance clients for future integrations. Let us know if you would like additional feedback about this

The main advantage of the LLC form of organization is the limited liability for the owners. The LLC must meet certain criteria, otherwise it will be considered a corporation by IRS and subject to double taxation. Owners of LLC pay personal income tax.

We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.

When people want to form a new business ventures, they usually can house their operation under one of several basic entity types. These entities differ in terms of their legal and tax consideration and each has advantages and disadvantages from both tax and nontax prospective. Therefore, it is important to know what type of entity is the best option before opening a new business and it is really depends on the goals, outlook and strategy for that particular business and its owners.

Sole Proprietorship is the most basic type of business to establish. It’s where you own the company as a single owner and are responsible for its assets and liabilities. To pick this legal structure, you alone have to be the sole owner where there is no distinction between you and the business. With Sole proprietorship, although it is the most common structure picked, there are advantages and disadvantages to picking this structure. Advantages include 1) It’s easy and inexpensive to form. This structure is the simplest and least costly to establish, the main costs are mainly limited to gaining the correct licenses and permits to run your business. 2) You have complete control. Being the soul owner of your business, you have complete control over any decisions that are made. You aren’t required to consult with anyone else when you want to make decisions or change things around. 3) You have easy tax preparation. It’s easy to do tax preparation and tax reporting requirements within a sole proprietorship. The tax rates are the lowest within this business structure. The disadvantages include 1) Having unlimited personal liability. You have

LifePath Wealth Management, LLC has identified two distinct target markets. First are aging baby boomer advisors in Maricopa County, AZ over the age of 60 years old that lack a formal succession plan for their businesses. These advisors are categorized into mature lifestyle practices with an existing client-base that are underserved in the scope of services currently provided and do not focus on providing comprehensive wealth management solutions for these clients and the next generation consisting of future heirs. The underserved client-base of these advisors serve as the second target market in that the advisors at these firms lack the time and energy to reinvent their firms and embrace new technology and solutions to scale and grow efficiently. These two groups of target customers are distinguished by their business makeup and client-base dynamics. The financial services industry has many different niches. Some advisors provide general investment management services creating a single value proposition dependent on outperforming the markets. Others will only offer one type of investment vehicle, maybe just mutual funds or they might concentrate on bonds. Others will concentrate on a specific niche like insurance sales or retirement plans.

Incorporation is forming of a new corporation. A corporation is like a legal entity that can be effectively recognized as a person under the law. The corporation may be a non-profit organization or a business. It is not affected by the death of any member. A sole trader is the most simple structure of business. This structure is less expensive to set up because there are very few legal and tax formalities. Operating your business as a sole trader means you trade on your own and control and manage the business. In Private Limited Company there is a minimum two to a maximum of fifty people, these people make financial contributions to their business and they have limited liability. They are also limited by the value of the