BUSI 2401U Lecture Notes - Lecture 1: Joint-Stock Company, Sole Proprietorship, W. M. Keck Observatory
Document Summary
Three major forms in canada: sole proprietorship. A business owned by a single individual: partnership. A business formed by two or more co owners. Limited: corporation (what we will focus more on in this course) A business created as a distinct legal entity owned by one or more individuals or entities. In other countries, corporations are also called joint stock companies, public limited companies and limited liability companies. Tax implications for corporate entities: shareholders of corporation pay taxes twice, a corporation"s profits are subject to taxation separate from its owner"s tax obligations. The corporation pays tax on its profits. The shareholders pay their own personal income tax on the profit distributed by the corporation. Financial managers try to answer some or all of these questions. The top financial manager within a firm is usually the cfo. The goal of the financial manager: is to maximize the wealth of the stockholders.
