Finance

The business organization is an entity that contains many divisions. The three divisions that will be explained are the sole proprietorship, the partnership, and the corporation. To further explain the corporation the goal of the financial manager will be stated as well as the objective of the corporation.

The sole proprietorship is the oldest form of a business organization. This division is owned and operated by one individual. The organization of a sole proprietorship can be informal, is normally considered simple to control and manage, and does not have much regulation from the state or the federal government. (Mauro, nd) This division also experiences unlimited liability meaning they are solely responsible for all debts incurred. In a partnership there can be two or more partners who are responsible for all aspects of the business; profits, liabilities, management, and assets. These partnerships are formed by individuals who will hopefully bring different strengths, resources, and expertise needed to run the business. One problem a partnership can face is each partner having different visions or goals. (AllBusiness, 2007) The final division is the corporation, an entity that exists entirely separate from its owners. The owners of a corporation are the shareholders, otherwise known as stock holders. The stockholders have limited liability; they are not responsible for the corporation's actions. Extensive government regulations often may hinder growth of the corporation. (Poznak Law, nd.)

The financial manager plays an important role within the corporation. They are responsible for establishing cash management strategies, preparation of financial reports, and direct investment activities. (BLS, 2006) The goal of the financial manager is to implement the long-term goal of their organization to maximize wealth. (Gitman, 2006)

I do agree with this goal. The main objective