E con2 5 6 0 * M i dterm Re vi e w C h apt er 1 – G oals & G over n an ceof t he fi r m Investment v Fi n a n cin g D ecisions I nves t ment T h e F i n anc i a l man a g e r h as t o h e l p t h e fi r m i d e n ti f y p r omi si n g p r oj ect s & d eci d e h ow mu ch t o i n vest in each p roj ect A l so c a l l e d t h e C api t a l Bu d g e t i n g D ec i s i o n D ecision ab ou t w h i chreal asse t s t h e fi r m sh ou l d acqu i r e F i n an ci n g • R aisin g mon ey t h at t h e fi rm n ee d s for t h e i n vest men t s and op erat ion s •C a p ital S t r u ct u re – A fi r m’ s mixof l o n g-te r m fi na n ci n g R ea l v F i n ancia l A sset s Real A r e u s e d t oproduce t h e fi r m’ s products and s e r vices I n cl u de t an gi b l e a sset s su chasma ch i n ery , fact ori es, an d o ffices A l so i n t an g i b l e asse t s suchas t ech n ica l kno w ledge, t r ad em ar k s, an dp at en ts. F in an ci al T h e fi r m fi nances i t i n v es t men t s in r ea l assets b y i ssui n g fi n a nci a l a sset s to i n vest ors E x; S h are of stock, b an kl oa n . S h ares of st ock an d ot h er fi nan ci al assets t h at can b e p u r ch ase d a n d t r a d esbyi n vest ors a r ecal l ed s e cu ri t i e s Wh a t is a cor p orati on ?
