ACCTNG 2400 1st Edition Lecture 1Outline of Last Lecture I. No previous lecturesOutline of Current Lecture II. Types of businessesIII. Business relationshipsCurrent LectureTypes of business:1. Sole Proprietorship- Owned by 1 person- Personally liable for all debts- Personally taxed2. Partnership- Owned by 2 or more people- Each personally liable for all debts- Personally taxed3. Corporationa. Public or private- Owned by investors- Corporation, not owners, in charge of taxes and debt4. Othersa. LLC, LLP, LLLP, S-Corp., etc.- Ownership, liabilities and taxes vary5. Non-profit organizations - Charities, colleges, hospitals, government, etc.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Don’t aim to increase any wealthBusiness Activities (chronological order):1. Get money2. Buy services and things to operate3. Provide services and products to customers4. Collect payment from customers5. Pay for the things that were bought6. Repay those who provided moneyVocab/Terminology:Wealth –“Net” assetsInterest – payment to “rent” money for a whilePrinciple – money the bank loans to a companyDividend – the company distributes (to the owners) some of the money it earned from salesShares of stock – Owner sells and ownership share to someone else for more money than they originally contributed to the
View Full Document
Unlocking...