a) Why is corporate finance important to all managers?
Corporate finance provides the skills managers need to identify and select the corporate strategies and individual projects that add value to their firm. It also helps to avoid costly mistakes. It also helps in forecasting the funding requirements of their company and to figure out how to acquire necessary funding.

b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
The 3 organizational forms are
(1) Sole Proprietorship (2) Partnership (3) Corporation
The advantages of a sole proprietorship are that it’s very easy to form, subject to very few regulations and no corporate income taxes. The disadvantages of a sole proprietorship are a limited life, unlimited liability and it is difficult to raise capital to support growth.
The advantages to a partnership are ease of formation, subject to very few regulations, no corporate income tax and limited liability. The disadvantages of partnership are limited life of the organization, difficulty transferring ownership and difficulty raising capital.
The advantages of a corporation are unlimited life, easy transfer of ownership, limited liability, easy to raise capital. The disadvantages of a corporation are double taxation, set up costs and filing fees.

c) How do corporations go public and continue to grow? What are agency problems? What is corporate governance?
Corporations go public by Initial Public Offering (IPO) of their stocks in order to raise funds. Agency problems occur when managers put their own self-interests before that of the shareholders. Corporate governance is rules and regulations used to control company behavior. These rules regulate how directors, managers, employees, shareholders, creditors, customers and competitors are