m3l6 - Spring 2008 Module 3 Accounting & Finance...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
David Robinson © D. Robinson, 2008 Spring 2008 Module 3 Lecture 6: Forms of Business How Firms Raise Capital
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Accounting Finance Managerial Financial Auditing How investors use their money How firms raise money Three financial statements Forms of business Income St. Balance Sheet St. Cash Flows
Background image of page 2
How Firms Raise Money Forms of Business How firms raise capital
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Forms of Business Most big businesses—but not all —are “Public Corporations”
Background image of page 4
An Introduction to “Forms of Business” Key concepts: 1. Control 2. Liability For debts For “tortuous acts” 3. Ability to raise capital for the firm 4. Taxes 5. Taking profits from the enterprise See p. 90—95 in Ebert
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Sole Proprietorship: Advantages Easy to start up “Fictitious Name Registration” (CA) “d/b/a” (“doing business as” in other states) Complete control Pay taxes on your income tax
Background image of page 6
Sole Proprietorship Disadvantages Hard to get funding Unlimited liability Difficult to sell (in whole or part)
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Partnership: Advantages Pooling of talents Additional financial resources Fairly easy to start up Profits are taxed on the partners individual income taxes (no taxes paid at the Partnership level)
Background image of page 8
Disadvantages Share the profits Need to reach consensus It may be very hard to sell your interest in the firm, if you want to leave Termination/inheritance problems Liability, in general . .. Individual liability
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/22/2009 for the course UGBA 08403 taught by Professor Robinson during the Spring '09 term at University of California, Berkeley.

Page1 / 33

m3l6 - Spring 2008 Module 3 Accounting & Finance...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online