Solution Manual for Principles Of Managerial Finance 16th Edition by Chad J. Zutter, Scott Smart

Solution Manual for Principles Of Managerial Finance 16th Edition by Chad J. Zutter, Scott Smart-This chapter introduces the field of finance through building-block terms and concepts. The chapter starts by explaining what a firm is and discussing the goals that managers of a firm might pursue. The chapter provides a justification for focusing on shareholders rather than stakeholders broadly, but it also discusses other goals that firms might pursue. The opening section concludes with material on the importance of ethical behavior in business. The next section discusses the managerial finance function, the key decisions that financial managers make, and the principles that guide their decisions. The discussion draws out distinctions among the overlapping disciplines of finance, economics, and accounting. The third section describes pros and cons of different legal forms for a business. This section places particular emphasis on differences in taxation of proprietorships, partnerships, and corporations, and it highlights the importance of the marginal tax rate rather than the average tax rate. Next, this section describes the classical principal-agent problem and describes both internal and external corporate governance mechanisms that help manage that problem. This chapter and the ones to follow stress the important role finance vocabulary, concepts, and tools will play in the professional and personal lives of students—even those choosing other majors, such as accounting, economics information systems, management, marketing, or operations. Whenever possible, personal-finance applications are provided to motivate and illustrate topics. This pedagogical approach should inspire students to master chapter content quickly and easily.