Chapter 1.docx - Feature story about Shoppers Drug Mart started as a family run organization and then expanded to 17 locations it then created its own

Chapter 1.docx - Feature story about Shoppers Drug Mart...

This preview shows page 1 - 2 out of 4 pages.

Feature story about Shoppers Drug Mart: started as a family run organization and then expanded to 17 locations, it then created its own brand "life brand" and started to sell it. Loblaw's bought out Shoppers drug mart. They could do all of this and gain profit by accounting and financial statements. Uses and Users of Accounting Accounting is the information system that identifies and records economic events of an organization and then communicates them to its users Accounting is the language of business because the economic system relies on it Internal users Plan, organize and run companies Must answer questions about finances, marketing, HR and production Accounting provides a variety of internal reports External Users Investor use accounting to make decisions on weather to buy or sell ownership Lenders use accounting to evaluate the risk of loaning money Other creditors such as suppliers use accounting to decide whether or not to grant a credit Potential employees use it to learn about the company more Ethical Behavior by Users Legal and responsible Consider the organization when making decisions Forms of business organizations Proprietorships A proprietorship is a business owned by one person Simple to set up and gives the owner control Small capital needed to start Liable for all debts (UNLIMITED LIABILITY) Taxed by personal income tax return Reporting entity concept requires the economic activity is defined and identified with a company to be kept separate from other activities Partnerships
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read all 4 pages?

  • Spring '08
  • CRABBE

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors