Financial management Unit One Fundamental Concepts of Financial Management Assignment .Summary GB 550

FUNDAMENTAL CONCEPTS OF FINANCIAL MANAGEMENT GB550: Financial management Unit One Fundamental Concepts of Financial Management Assignment Phyllis Rhyne-Bright February 17, 2015 2 FUNDAMENTAL CONCEPTS OF FINANCIAL MANAGEMENT Why is corporate finance important to all managers? The reason why corporate finance is vital to all managers is because an organization’s capability to increase in size relies on its interactions with the finance arena in which commercial dealings are conducted. This includes managers such as the partnerships, proprietors, and small organizations. According to Merritt (2015), “The principles of corporate finance affect every decision maker in a corporation. Managers often must implement and explain those decisions to the people who report to them (para. 1). The comprehension of the finances of an organization provides the management with the facts needed to advise, inspire, and influence. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form