1. Describe the field of finance. How is it different from the field of accounting?
Finance is the act/process/study of managing money in such a way that you aquire and keep more money, and lose less of it. Finance is deciding what to do with the money you have. Accounting is figuring out how much money you have.
2. In a typical corporation the finance function is divided into two divisions, or departments. What are they? What does each department do?
In a typical corporation there are two divisions, Treasurer’s and Controllers offices that manage the finance function. The Treasurer’s Office is responsible for managing the firm’s cash and credit, its financial planning, and its capital expenditures. The…show more content… 7. What’s wrong (if anything) with saying the basic financial goal of a business is to “maximize profits?”
There’s nothing wrong with saying that since the goal of every business is to make as much money as possible. However, some do counter that this limits diversity and creates bureaucracy which ultimately leads to unethical behavior and even the degradation of society. I believe this counter argument is a liberal attempt advocating for a shift towards socialism.
8. How would you state the basic goal of a non-profit firm?
The basic goal of a non-profit firm is to provide some socially desirable need on an ongoing basis. The resources provided are directed towards providing goods or services to a client other than the actual resource provider.
9. The Internet company Google managed to avoid $2 billion in international income taxes in 2011 by moving a hefty sum of its revenues to subsidiaries in Bermuda, according to CNBC, which cited a report by Bloomberg. The search giant reportedly stashed $9.8 billion in revenues to its shell company in Bermuda — which doesn't have a corporate income tax — last year allowing the company to shave its overall tax rate by almost 50 percent. Google's Bermuda move was disclosed in a Nov. 21 filing by a subsidiary in the Netherlands. While the company's move to shift funds to the country was legal, it could spur the growing global criticism of corporate tax