PAÑÑĀSĀSTRA UNIVERSITY OF CAMBODIA-SIEM REAP CAMPUS
Name: SOTH Bun Heng
Course: Financial I
ID: 06500
Assignment I
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Chapter I: Introduction to Corporate Finance Concepts
Review and Critical Thinking Questions: Exercise 3 and 5
3. Corporation [LO3] What is the primary disadvantage of the corporate form of organization?
Name at least two advantages of corporate organization.
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The primary disadvantage of the corporate form of organization is the double taxation
to shareholders of distributed earning and dividends. The advantages of corporate
organization include: limited liability, ease of transferability.
5. Corporate Finance Organization [LO4] In a large corporation, what are the two distinct
groups that report to the chief financial officer? Which group is the focus of corporate finance?
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The treasurer's office and the controller's office are the two primary organizational
groups that report directly to the chief financial officer. The controller's office h handles
cost st and financial accounting, tax management, and management information
systems, while the treasurer's office is responsible for the cash and credit management,
capital budgeting, and financial planning Therefore, the study of corporate finance is
concentrated within the treasury group's functions.