一、***是什么意思？
1）Capital budgeting 资金预算
2）Capital Structure 资金结构
3）Net working capital
二、组织结构图谁负责谁？
三、The corporate firm
Forms of Business Organization
●Attributes:
●It is the cheapest business to form.
●It pay no corporate income taxes.
●The owner has unlimited liability.
●Its life is limited.
●It has difficulty in raising funds.
1)The sole proprietorship 独资企业特点P7
2)The Partnership 合伙企业（The business is owned by two or more persons.）Attributes:特征
@Initiation
@Liability
@ Life
@ Ability to raise funds
@Taxation
@Controlling
（1）General Partnership
@ All partners agree to provide fraction of the work and cash and to share the profit and loss.
@Each partner is liable for all of the debts .
（2）Limited Partnership
One or more partners are designated general partners and other partners are designated limited partners.
3）The Corporation: 公司
A corporation is owned by individuals who normally are not active in the day –to –day operation of that business.
It is by far the most important form of business.
Features:特征
1.Starting
@Starting a corporation is more complicated
@Preparing articles of incorporation and a set of by laws:
Name of corporation
Intended life
Business purpose
Number of shares of stock
Nature of the right granted to shareholders
Number of members of the initial board of directors
2. Three sets of distinct interests:
Shareholders
Directors
Corporation officer
3.It is a legal entity.
4.Ownership
Ownership is represented by shares of stock, it is easy to transfer ownership.
5.Life
6.The corporation has unlimited life
7.Liability
Liability is limited to the amounted invested in the ownership .
8.Taxation: double taxation
9.Raising funds: easy
The goal of financial management：
Maximize the current value per share of the existing stock.
1.5 Financial Markets
Classification of financial markets市场分类
1.Money market vs capital market
1) Money Market
The market for debt securities that will pay off in the short term
2) Capital Market
The market for long-term debt and for equity shares (common stock, preferred stock, corporate and government bonds
2.Primary Market vs Secondary Markets
1) Primary Market一级市场
Issuance of a security for the first time
2)Secondary Markets二级市场
Buying and selling of previously issued securities
anized security exchanges vs over-the counter market (
Securities may be traded in either a dealer or auction market
1) Organized security exchanges are tangible entities
NYSE
2）OCT include all security markets eccept the organized exchanges.
NASDAQ
2.3 Taxes
The one thing we can rely on with taxes is that they are always changing
Marginal vs. average tax rates
Marginal – the percentage paid on the next dollar earned
Average – the tax bill / taxable income
1) Average tax rate is tax bill divided your taxable income.
2) Marginal tax rate is the tax you would pay (in percent) if you earned one more dollar.
例题：
Taxable Income Tax Rate
$ 0 - 50,000 15%
50,001-75,000 25%
75,001-100,000 34%
100,001-335,000 39%
335,001-10,000,000 34%
--------------------------------
The tax rates apply to the part of income in the indicated range only, not all income.
Suppose your firm earns $4 million in taxable income. Use table2.1,we can figure out tax bill as:
.15($50,000)=$7,500
.25(75,00-50,000)=6250
.34(100,000-75,000)=8500
.39(335,000-100,000)=91,650
.34(4,000,000-335,000)=1246,100
Total tax bill 1,360,000
Average tax rate= 1,360,000/4,000,000 =34%
