Corporate Finance

Chapter 1
~Financial decision
~Capital budgeting decision
~Real asset
~Financial asset
CFO's role
~ Treasurer
~ Controller - responsible for budgeting, accounting, taxes
Agency problem
ownership vs management.
~managers act as agents for stockolders,may act in their own interet rather than maximizing value.
~stakeholder is the one with a financial intrest in the firm
Solving solution:
Compensation plans,BOD, takeovers, specialist monitoring, legal and regulatory requirement.

International business

Chapter1

Foreign firm International investment:

i) Foreign direct investments- owned a company

ii) Portfolio investments- just invest to get dividend

Problem:

1) legal system

2) culture

3)availability of resources

4) currency conversion

Activities of international business

1)Exporting& importing

2)International investment

3)Licensing, franchising, management contract

Objective of multinational corporations

~ engage in FDI

~ own and control foreign assets

~ buy, create and sell goods & services in multiple coutries.
Globalization- decline of trade barrier
~ end of world war II
~ technological change(telecommunication,internet >> lower infor cost,lower transportaton)
Global institution occur:
~manage,regulate and police the global market place
~promote lower trade barrier
Eg: GATT general agreement on tariffs and trade,WTO World trade organization, UN united nations, IMF international monetary fund
-------------------------------------------------------------------------------------------------------------
Chapter3
Legal environment
~Domestic follow home country's law.
~International businesses follow home and host country's law.
Type of law:
i)Common law (country under british before) eg, malaysia ,singapore
ii)Civil law eg,Italy, japan thailand
iii)Religious law eg, saudi arabia,Iran (no appeal process)
iv)Bureaucratic law (country under communist before) eg, china, south korea

Advance diploma ~~ start ~~

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Diploma Finish

Start a new journey ..

Entrepreneurship

What is entrepreneurship ?
- The process that an indivisual find opportunities without regard to resources.
- the art of turning an idea to a business.
- integrate all the resources, money, prople,business model and the strategy.
Essences:
motivated all the time although other people say bad to the business.
able to take risk.
Creative.

Why become entrepreneur ??
-become own boss
-want to use own idea
-more financial reward

Characteristics of successful entrepreneurship
*(激情）passion for the business - belief the business can positively influence people life.
*Product/ customer focus - satisfy/benefit the customers
*Tenacity despite failure - can face failure when try new thing
*Execution Intelligent - ability to change idea to viable business.

Business Economic

Cost of taxation

     Without tax ,

     CS=A+B+C

     PS=D+E+F

     tax revenue= 0

     total surplus = CS+PS

     With tax ,

     CS=A    

     PS=F

     tax revenue=B+D

     total surplus= A+B+D+F
    Therefore, C+E=deadweight loss


-------------------------------------------------------------------------------------------------------------
Tariff- a tax on import
Argument for restricting trade
1) The jobs argument- trade destroy job that against import
2) The national security argument- protected from foreign competition
3)The infant-industry argument- temporary protection for new industry
4) The unfair competition argument- other country may have unfair advantage
5) the protection as bargaining chip argument- exchange trade item between 2 country.

Company law

Sole trader- profit & risk bear on himself , can make own decision . Eg. hawker
Partnership- minimum 2 ppl , maximum 20 ppl, can be createorally or writing.
company- complex rules, rights, liabilities.