FIN301 Case 1 Travis G James Module 1

.docx

School

Augusta Technical College *

*We aren’t endorsed by this school

Course

301

Subject

Finance

Date

Apr 3, 2024

Type

docx

Pages

6

Uploaded by MagistrateAlpacaMaster1019 on coursehero.com

Module 1 Case Travis G James-Primas Trident University International FIN301 Principles of Finance (2023NOV06FT-1) Professor Dr. Charles McManus November 18, 2023
Trident University FIN301: Principles of Finance Module 1: Case Name: Travis G. James Question 1: In your small business you have a finance department with a CFO, controller, and treasurer. For the following scenarios, explain which of these three financial executives would be the most likely to work on the issue based on the descriptions of the roles of the CFO, controller, and treasurer from Peterson and Fabozzi (2010) from the required reading. A. You suspect that a lower-level employee has embezzled around $50,000 over the last three years and you want to try to find out who based on past financial records. Who would be most likely person to look into this issue – the CFO, the treasurer, or the controller? Why? ANSWER: The controller would be the person who would investigate the issue. One would think, the CFO would step in, but the controller would have complete access as well. Understanding that the controller is responsible for auditing accounts. The controller is the one who investigates the allegedly embezzlement case. Although, the controller oversees the case, they are still assisted by the CFO if needed. Lastly, once the controller investigates the situation and identify the problem, the results are reported to the CFO. B. Your chief marketing officer wants to take out a large loan to finance a major advertising campaign that he claims will bring in large sums of new profits over the next few years. However, your chief operating officer wants to take out a large loan to purchase some new equipment and machinery that she claims will save your company a lot of money over the next few years. You would like to see some estimates about which of the two projects will be most likely to increase profits enough to be able to pay back the loan. Who would be most likely person to look into this issue – the CFO, the treasurer, or the controller? Why? ANSWER: In this case, the chief marketing officer and also the chief operating officer both wants to take out a loan that would benefit the company in different ways. The chief marketing officer Once the money for a new major advertising campaign that would benefit the company wow the chief operating officer wants the money for newly updated equipment and machinery that would benefit them for years to come. Because this is a issue dealing with funds, the treasurer would be more than likely the person to handle the financing issue. The treasurer is the one who oversees the finances of the company, closely reviews the policy and procedures, and financial reporting.
In the end they advised the board on the financial plan, while implementing new fundraising strategies. Once all of the benefits have been taken in account, the plan that has the higher benefit would be considered. Question 2: Explain whether the following assets are a real asset or a financial asset. Explain your reasoning using the definitions of real vs. financial assets. Refer to Chapter 2 from the Peterson and Fabozzi (2010) text. A. A certificate of deposit at your local bank ANSWER: Explain: Although they are lumped together as tangible assets, real assets are a separate and distinct asset class from financial assets. Unlike real assets, which have intrinsic value, financial assets derive their value from a contractual claim on an underlying asset that may be real or intangible, (James Chen, May 21, 2021).” All assets hold value to a company or an individual, which could be converted into cash. Financial assets are considered liquid property that has value, stocks and bonds or bank accounts. So, with this understanding, a certificate of a deposit at your local bank would be a financial asset. B. A two-bedroom house ANSWER: Explain: R eal assets are normally the physical assets. Financial assets would include things like stocks, bonds, and cash. While real assets would include things like family homes, commodities, and infrastructure.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help