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     What is corporate finance? What is the role of the 
     financial manager in the corporation?
     What is the goal of financial manager?
   +1.1 Corporate finance and 
       financial manager 
      1.   What is corporate finance?
      Financial manager should answer these question:
       What long-term investment should you take? (line of business, 
         sort of building, machinery and equipment).
       Where will you get the long-term financing to pay for your 
         investment? (from owners or borrow money).
       How will you manage your everyday financial activities such 
         as collecting from customer and paying suppliers?
      Corporate finance: is the study of ways to answer these three 
      questions.
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    2. The financial manager:
     Owners (the stockholders) are usually not directly 
     involved in making business decision, particularly on a 
     day-to-sat basis.
     The corporate employs managers to represent the 
     owners’ interests and make decision on their behalf.
     The financial management function is usually 
     associated with a top officer of the firm, such as a vice 
     president of finance or some other chief financial 
     officer (CFO).
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     3. Financial manager decision:
     i.        Capital budgeting: the process of planning and managing a firm’s 
               long-term investment. Financial managers tries to identify 
               investment opportunities that are wealth more to the firm 
               than they cost to acquire.
     ii.       Capital structure: (or financial structure) is the specific mixture of 
               long-term debt and equity the firm uses to finance its 
               operations. The financial managers has two concern in this 
               area: first, how much should the firm borrow? The mixture 
               chosen will affect both the risk and the value of the firm. 
               Second, what percentage of the firm’s cash flow goes to 
               creditor and what percentage goes to the shareholder?
     iii.      Working capital management: the term working capital refer to a 
               firm’s short-term assets, such as inventory, and its short-term 
               liabilities, such as money owed to suppliers. Managing the 
               firm’s working capital is day-to-day activity. 
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       1.2 forms of business 
       organization
        There are three different legal forms of business 
          organization: 
       1.    sole proprietorship. 
       2.    Partnership.
       3.    corporation.