Financial management & corporate acquisitions

Undergraduate
Essay
Miscellaneous
Pages 2 (502 words)
Download 0
A firm or Corporation is a legal body that is separate and dissimilar from its owners.Corporations must have an owner, but there is not upper limit.The owners are called as share holders or stock holders.The interest of the shareholders in a corporation is divided into units called stock, shares or shares of stock…

Introduction

A firm or Corporation is a legal body that is separate and dissimilar from its owners. Corporations must have an owner, but there is not upper limit. The owners are called as share holders or stock holders. The interest of the shareholders in a corporation is divided into units called stock, shares or shares of stock. The rules for corporations along with the advantages and disadvantages apply equally to corporations owned by one or more than one shareholder. Corporation like an individual have rights and responsibilities like entering into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes. But the most important feature of a corporation is limited liability. This means share holders have the right to participate in the profits, through dividends and the admiration of stock but are not personally liable for company's debts.Most firms acquire other corporations with the main purpose being to make the most of shareholder value. The other reasons for the acquiring of firms can be entering new markets, increase market share, increase profit, and attain new products. Acquiring firms means an increasing amount of opportunity for the employees and managers. The profitability of the firm is in the hands of the executives, if they handle the company properly than the profitability will increase for the shareholders. Managers are informed one of the main tasks they have is to control cost, they may be overhead cost or cost of capital. This is done to make sure that the firm develop and cut cost for each and every category. ...
Download paper
Not exactly what you need?

Related papers

Corporate Finance-Mergers and acquisitions
Generally, mergers are brought about in a consensual and cordial environment where the target company helps the purchaser in a 'due diligence' process to ensure that the deal is beneficial to both parties. But acquisitions are sometimes "hostile", in that the acquiring company purchases in the open market a majority of outstanding shares of the target company against the wishes of the target…
Financial Managment about (Mergers & Acquisitions)
Periodic environmental appraisal and organizational appraisal lead to generation of strategic alternatives. The strategic alternatives are then evaluated in the context of organizational strengths, weaknesses, opportunities and threats. Expansion strategy is followed when an organization wishes to broaden the scope of its customer groups, functions, alternative technologies etc. …
Organisational Management in Financial Services
ference between mergers and acquisitions as mergers are attributed to the consolidation of two corporations and acquisitions involve purchase of one organisation by another.This will be a decision based mainly on financial strategic management where the danger is that there will be a failure to meet the anticipated purpose in the end.Therefore in the light of all these considerations in order to…
Financial management & corporate acquisitions
A firm or Corporation is a legal body that is separate and dissimilar from its owners. Corporations must have an owner, but there is not upper limit. The owners are called as share holders or stock holders. The interest of the shareholders in a corporation is divided into units called stock, shares or shares of stock. The rules for corporations along with the advantages and disadvantages apply…
Impact o Mergers and Acquisitions on Financial Performance
The context of this study represents understanding mergers and acquisitions, and their impact upon financial performance. The preceding statement carries a broad number of facets that need to be considered and equated in delving into such an inquiry. Mergers and acquisitions represent the decision of one and or both companies whereby combining their operations, merger, represents an arrangement…
Mergers and acquisitions process
Despite these findings, companies continue to adopt an M&A strategy for several reasons.…