ACC 110 Chapter 1 Powerpoints.pptx - Financial Accounting for Undergraduates 3e CHAPTER 1 F I N A N C I A L A CC O U N T I N G A N D B U SI N ESS DE C I

ACC 110 Chapter 1 Powerpoints.pptx - Financial Accounting...

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3e Financial Accounting for Undergraduates © Cambridge Business Publishers CHAPTER 1 FINANCIAL ACCOUNTING AND BUSINESS DECISIONS
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Learning Objective 1 © Cambridge Business Publishers 2 Explain business organization and its three forms.
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Forms of Business Organization © Cambridge Business Publishers 3 Sole Proprietorship A business owned by one person The most common form of business Partnership A voluntary association of two or more persons for the purpose of conducting a business Corporation A separate legal entity The owners of the corporation are the stockholders The dominant organizational type
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Sole Proprietorship © Cambridge Business Publishers 4 Advantages Easiest to form Tax advantages Owner can control
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Partnership Advantages Relatively easy to form Tax advantages Broader skill set 5 © Cambridge Business Publishers
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Corporation Advantages Easiest to raise capital Easiest to transfer ownership Protection for the stockholders against personal liability 6 © Cambridge Business Publishers
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Select the correct answer.7Each of the following is an attribute of a corporation except © Cambridge Business Publishers : A.The owners are the stockholdersB.The dominant organizational typeC.The most common form of businessD.A separate legal entity
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Learning Objective 2 © Cambridge Business Publishers 8 Describe business activities.
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Business Activities © Cambridge Business Publishers 9 Three types of Business activities 1. Financing 2. Investing 3. Operating
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Business Activities—Financing © Cambridge Business Publishers 10 Financing Activities A company needs to acquire money in order to support its operations 1. Debt financing Borrowing money from creditors 2. Equity financing Selling stock to investors
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Business Activities—Investing © Cambridge Business Publishers 11 Investing Activities A company needs to purchase resources in order to run its day-to-day operations. Investing activities involve acquisition or disposition of items such as land, buildings, and equipment.
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Business Activities—Operating © Cambridge Business Publishers 12 Operating Activities The day-to-day activities of producing and selling a product or providing a service The reason the company exists
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Business Activities Financing Activities Investing Activities Operating Activities 13 © Cambridge Business Publishers
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Select the correct answer. © Cambridge Business Publishers
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