BUS1 170 Lecture Notes - Lecture 1: Double Taxation, Limited Liability Company, Enron Scandal
4 Apr 2016
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Finance- the study of how people and businesses evaluate investments and raise capital to fund them. Knowledge of financial tools is critical to making good decisions in both corporate world and personal lives. All of these involve spending money today in hopes of generating more money in the future. No need to consult others while making decisions. Taxed at the personal tax rate: disadvantages: i. ii. iii. Personally liable for the business debts (unlimited liability) The business ceases on the death of the proprietor. Partnership: a general partnership is an association of two or more persons who come together as co-owners for the purpose of operating a business for profit. Just as with the sole proprietorship, there is no separation between the general partnership and its owners with respect to debts or being sued: advantages: i. ii. iii. Access of funds from multiple sources or partners: disadvantages: i. ii. It is not always easy to transfer ownership j. i. e. )
