Chapter_12 - Owners Equity Chapter 12 Business Structure...

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Owners’ Equity Chapter 12
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Business Structure Proprietorship, Partnership, or Corporation Proprietorship, a single owner Partnership, the business is not incorporated ,2 or more partners Corporation, the business is corporate Advantages of Corporate Form Limited liability Unlimited life time Easier to get access to get financing Disadvantages of Corporate Form Owners have little control over activities, operation and direction Double taxation Go through legal paper documents
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Shares Common Share Basic voting shares Residual owners Class A, class B common share difference in voting right and dividend right Preferred Shares Shares of the company that have some sort of preference Preference of dividends, liquidation of company Get priority to dividends and liquidation, but no voting right Choice of Investments Bonds, preferred shares, common shares Common shares, most risky, receive dividends last, highest
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This note was uploaded on 04/02/2010 for the course AFM AFM 101 taught by Professor Kennedy during the Fall '09 term at Waterloo.

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Chapter_12 - Owners Equity Chapter 12 Business Structure...

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