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Unformatted text preview: 1. Proprietorship One person small service owner receives all profit 2. Partnership Owned by two or more people retail/service type mainly: generally unlimited liability (both partners are liable for the actions of the other) must have a legal partnership agreement 3. Corporation Must file paperwork and register your corporation benefit is that its a separate legal entity (if corp. sued, stockholders are not liable for debt) Know advantages and disadvantages of all three The Basic Accounting Equation (see powerpoint) Assets = Liabilities + Stockholders Equity Assetsthe resources that a business owns (what they own or have the right to own in the future; provides current and future benefit to the organization) Liabilitiesclaims against assets; creditors are the people to whom you owe money Stockholders Equitypersonal money you put into the business (paid in capitol)...
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This note was uploaded on 10/10/2010 for the course ACCT 2000 taught by Professor Holmes during the Spring '08 term at LSU.
- Spring '08