Management and Organizational Studies 1023A/B Lecture Notes - Lecture 1: Accounts Payable, Financial Statement, Limited Liability

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Global economic systems depend on reliable and accurate financial reporting. Accounting identifies and records the economic events of an organization and communicates to interested users. Ex decisions: pricing, strategic, marketing, etc: external: Others: tax authorities, regulatory agencies, customers, etc. For info to have value, must have high ethical standards: actions are legal and responsible, consider organizations interests. Rules or codes of conduct to guide behaviour. Companies have rules of conduct: still up to person to be ethical. Proprietorship: owned by one person, simple to set up, owner has control over business, unlimited liability. Partnership: similar to proprietorship except owned by more than one person, formalized in a written agreement, each partner has unlimited liability. Indefinite life: shareholders enjoy limited liability, public or private, own legal entity. Have to keep personal and companies records separate. What you are going to pay tax on, results of that entity. Manufacturing business: material, expensive to start up, ex: gm motors.