Accounting Question

Assessment Description

The purpose of this assignment is to explain core concepts related to the U.S. financial system.

Read the Chapter 1 Mini Case in Financial Management: Theory and Practice.

Using complete sentences and academic vocabulary, please answer questions a through d.

While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

Mini Case

Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle DellaTorre, a professional tennis player who has just come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to produce and market apparel she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. DellaTorre is very bright, and she would like to understand in general terms what will happen to her money. Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre.

1. Why is corporate finance important to all managers?
2. 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.
3. How do corporations go public and continue to grow? What are agency problems? What is corporate governance?
4. What should be the primary objective of managers?
   • (1)Do firms have any responsibilities to society at large?
   • (2)Is stock price maximization good or bad for society?
   • (3)Should firms behave ethically?

Rubric Criteria

Total 25 points

Criterion	1. Unsatisfactory	2. Insufficient	3. Approaching	4. Acceptable	5. Target
Question A Question A	0 points Answer is not present.	3.7 points Answer is present but lacks detail or is incomplete.	3.95 points Answer is present.	4.35 points Answer is detailed.	5 points Answer is thorough.
Question B Question B	0 points Answer is not present.	3.7 points Answer is present but lacks detail or is incomplete.	3.95 points Answer is present.	4.35 points Answer is detailed.	5 points Answer is thorough.
Question C Question C	0 points Answer is not present.	3.7 points Answer is present but lacks detail or is incomplete.	3.95 points Answer is present.	4.35 points Answer is detailed.	5 points Answer is thorough.
Question D Question D	0 points Answer is not present.	5.55 points Answer is present but lacks detail or is incomplete.	5.93 points Answer is present.	6.53 points Answer is detailed.	7.5 points Answer is thorough.
Mechanics of Writing (includes spelling, punctuation, grammar, language use)	0 points Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice or sentence construction is used.	1.85 points Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register) or word choice are present. Sentence structure is correct but not varied.	1.98 points Some mechanical errors or typos are present, but they are not overly distracting to the reader. Correct and varied sentence structure and audience-appropriate language are employed.	2.18 points Prose is largely free of mechanical errors, although a few may be present. The writer uses a variety of effective sentence structures and figures of speech.	2.5 points Writer is clearly in command of standard, written, academic English