Professional Documents
Culture Documents
Fixed Assets
1. Tangible
Shareholders’
2. Intangible Equity
Fixed Assets
In what
1. Tangible long-term Shareholders’
2. Intangible assets should Equity
the firm invest?
Current
Liabilities
Current Assets
Net
Working Long-Term
Capital Debt
How should
Fixed Assets
short-term
1 Tangible operating cash Shareholders’
flows be
2 Intangible Equity
managed?
Treasurer Controlle
r
Voting rights Usually each share gets one General partner is in charge;
vote limited partners may have
some voting rights
Taxes
Ultimately, the firm The cash flows from
must be a the firm should exceed
Government (D)
cash-generating the cash flows from
activity. the financial markets.
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1.4 The Goal of Financial Management
What is the correct goal?
◦ Maximize profit?
◦ Minimize costs?
◦ Maximize market share?
◦ Maximize shareholder wealth?