Management and Organizational Studies 1023A/B Lecture Notes - Lecture 2: Legal Personality, Sole Proprietorship, Limited Liability

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

Document Summary

Types of business: manufacturing business, merchandising business, e. g. Walmart, canadian tire, best buy, tim hortons: service business, e. g. Business activities: financing activities either borrowing money (debt financing) or issuing/selling shares (equity financing) in exchange for cash. Liabilities amounts owed to lenders/other creditors (form of debt or other obligation) Definition = borrowing cash from lenders by issuing debt or using cash to repay debt. Cash can also be raised from shareholders by issuing shares or paid to shareholders by repurchasing shares or distributing dividends: investing activities involve the purchase (sale) of long-lived assets that a company needs in order to operate. Assets resources that a company owns or controls. Definition = purchasing and disposing of long-lived assets such as property, plant, and equipment and purchasing and selling long-term investments: operating activities begins when the business has finances and made investments. Revenues the amounts earned from the sale of goods.