Accounting Notes - Accounting Notes Sole proprietorship...

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Accounting Notes 22:40 Sole proprietorship Business owned by one person Simple to establish Owner controlled Tax advantages Owner personally liable Financing difficult Partnership Two or more owners Simple to establish Shared control Tax advantages Personal liability Corporation Separate legal entity owned by stockholders Easy to transfer ownership Greater capital raising potential Lower legal liability Unfavorable tax treatment Users of Financial Information Internal vs. External o Internal Users: Managers who plan, organize and run a business
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Marketing managers Production supervisors Finance directors Company officers o External Users Investors Creditors Others Regulatory agencies Tax authorities Customers Labor Unions Economic planners Ethics  Effective financial reporting depends on sound ethical behavior
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This note was uploaded on 03/09/2009 for the course ECON 101 taught by Professor Hansen during the Spring '07 term at University of Wisconsin.

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Accounting Notes - Accounting Notes Sole proprietorship...

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