Ask Question
BusinessBusiness
3 October, 19:26

Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments.

Below is a set of decisions made by finance professionals. Categorize the decisions according to the area of finance to which they belong.

1. Radford is a small company that manufactures automobile bearings. Managers at the company must make decisions on the kind and the cost of equipment to buy.

2. Chris works for a financial advising firm. he must create a financial plan and come up with a list of securities that his client can invest in. Chris must make decisions regarding the investments that he should recommend to his client to include in his or her portfolio.

3. Brandon works for an investment bank and makes decisions about the sale of new common stock by ABCL Inc.

+5
Answers (1)
  1. 3 October, 21:59
    0
    1. Radford is a small company that manufactures automobile bearings. Managers at the company must make decisions on the kind and the cost of equipment to buy - Investments.

    2. Chris works for a financial advising firm. he must create a financial plan and come up with a list of securities that his client can invest in. Chris must make decisions regarding the investments that he should recommend to his client to include in his or her portfolio - Corporate Finance.

    3. Brandon works for an investment bank and makes decisions about the sale of new common stock by ABCL Inc. - Corporate Finance.

    Explanation:

    (1) Option no. 1 relates to the decision making with respect to production equipments. This decision making falls into the category of Capital budgeting (fixed assets investing) decisions. These kind of decisions are investing decisions and thereby will fall under investments domain.

    (2) Option no. 2 majorly relates to the functioning of important functions by an financial advising firm, which are necessary for its value creation. Hence, the decision will fall under Corporate Finance and not in Capital markets domain, as making a financial plan for portfolio recommendation to clients is the major activity of any Financial Advising firm.

    (3) Option no. 3 again relates to the decision making by an investment bank, which is at the heart of its operations i. e. Initial Public Offer or Follow on Public Offer advisory to a firm. Hence, the decision making falls under Corporate Finance.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. Below is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following statements is true of Gap 3 in the GAP model? a. It can be minimized by making senior managers work in frontline jobs a few days every year so that they keep in contact with customers and frontline employees. b.
Answers (1)
A process currently services an average of 43 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion.
Answers (1)
Ziegler Company properly applies the lower of cost and net realizable value rule and determines that its inventory value has declined below cost.
Answers (1)
John and Shirley have one child eligible for the Child Tax Credit, file their tax return as married filing jointly and, at a $410,000 modified adjusted gross income for 2019, they have an AGI that exceeds the threshold at which the Credit begins to
Answers (1)
In the story of New England Wire and Cable, the company was in an unusual situation of being worth more dead than alive.
Answers (1)
New Questions in Business
An owner withdrawal of $20,000 would: A. decrease owner’s equity and increase assets by $20,000. B. increase owner’s equity and decrease liabilities by $20,000. C. increase liabilities and assets by $20,000.
Answers (1)
Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if SteadyResults performs poorly, her salary will most likely:
Answers (1)
A qualification that might ordinarily be argued as being a basis for discrimination, but a company can show is job related and necessary is called a a. real and necessary distinction. b. quasi-discriminatory factor. c.
Answers (1)
Rasheed can afford a monthly car payment of $600 for 5 years at an annual interest rate of 4 percent. Which of the following is closest to the amount he will be able to borrow for a new car? Remember, loans are END of period.
Answers (1)
Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.
Answers (1)
Home » Business » Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. Below is a set of decisions made by finance professionals.
Sign Up Forgot Password?