The subject: corporate finance
Corporate finance and corporations
•We speak about corporate finance so a corporation is not:
- a sole proprietorship: the company belongs to one person that has unlimited liability (and no employer social security)
- partnership: id. but each partner is under unlimited liability
• A corporation is an entity legally distinct from its owners. Its main characteristics are:
- It can borrow money, sue, pay taxes, etc.
- limited liability: what you lose in a case of bankruptcy is at most your stocks.
- In general managers are not owners.
- More convenient if your firm grows
The financial manager
Three main responsibilities for the financial manager:
- what investment should the firm make ? = spending money: investment/ Capital budgeting decision (we need criteria to know if a decision is worth taking)
-sources of funds = Financial structure
- managing everyday financial activities = working capital management (very important because many firms go bankrupt while they make profit just because they have no available cash)
About our courses
There is currently one full course available: Corporate finance. Please look at the menu on the right for the content of the course. More courses are currently in preparation and will be available soon.
PART ONE: CAPITAL EXPENDITURE
The present value
problems in capital budgeting
PART TWO. BASICS OF FINANCE
Acquisitions, and Corporate Control
PART THREE FINANCING DECISIONS
and capital structure
PART FOUR FINANCIAL MANAGEMENT
Course created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.