New Chapter 1 Class Notes

New Chapter 1 Class Notes - Chapter 1: Overview of...

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Chapter 1: Overview of Financial Management 1. Three main forms of Business Organization A. Sole proprietorship 1. Unincorporated business owned by one individual. 2. Advantages: easily and inexpensively formed, subject to few government regulations, avoids double taxation. 3. Disadvantages: limited ability to raise large sums of capital, owner has unlimited personal liability for business debts, difficult to transfer ownership, life is limited to life of owner. B. Partnership 1. Unincorporated business owned by two or more individuals. 2. Advantages: easily and inexpensively formed, avoids double taxation. 3. Disadvantages: limited ability to raise large sums of capital, owners have unlimited liability for business debts, difficult to transfer ownership, life is limited to lives of partners. C. Corporation 1. A legal entity created by a state and is separate and distinct from its owners and managers. 2.
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This note was uploaded on 03/24/2008 for the course BUS 320 taught by Professor Sloan during the Fall '08 term at N.C. State.

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New Chapter 1 Class Notes - Chapter 1: Overview of...

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