Business Administration 2257 Chapter Notes - Chapter 1: Income Statement, Sole Proprietorship, Retained Earnings

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Eleni Petrou

Document Summary

Internal = internal users are people who work within the company to plan, organize, and run the company (managers, executives, etc. ) External = external users are people outside of the company (investors, auditors, lenders/creditors) - need to know if the company is worth investing in, profitable, will be able to pay back their loans. A: easy to set up, all profits are yours, little initial capital, power. D: unlimited liability, limited life, limited expertise, no legal distinction between owner and business. A: abundant investment capital/resources, skills, unlimited life, limited liability to investor. D: difficult to set up, hard to make decisions, A: does not have to report to the public. D: does not get the funding from public. A: get funding from public, traded on stock exchange. Asset: something that a company own"s and has control over. Liability: amounts owed to others in form of an obligation.