After studying this chapter you should be able to

• Explain the advantages and disadvantages of corporations, sole proprietorships, and partnerships.
• Cite the major decisions that financial managers make, and explain the special roles of the chief financial officer (CFO), treasurer, and controller.
• Give examples of career paths in finance.
• Explain why maximizing market value is the logical financial goal of the corporation.
• Understand why conflicts of interest arise in large corporations.
• Explain how corporations provide incentives for everyone to work toward a common end.