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FD (1) - Introduction to Financial Decisions Welcome to the...

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Unformatted text preview: ???? Introduction to Financial Decisions ???? Welcome to the Introduction Financial Decisions e-lecture series. ?? This e-Lecture system will enable you to listen to a lecture provided as part of Financial Decisions course at Hosei University. These lectures have been developed as part of the Good Practice Project supported by MEXT (Ministry of Education, Culture, Sports, Science and Technology): http://www.mext.go.jp/a_menu/koutou/kaikaku/gp.htm in conjunction with HURIC (Hosei University Research Institute, California). To view a lecture, choose the chapter you wish to study and simply click the bottom on your left This course is an introduction to the underlying theory that drives the tools of financial decisions-making within a business. It shows how corporate finance works, the range of issues involved and how to perform financial analysis. XML書書書書 ????? ?????? Henry Wong Financial Decisions Chapter1 ????? Push here to start ???????? ?????????? slide/fd_01slide.swf flv? ? ? ? ???? flv/fd_01vid000.flv 00:01.0 flv/fd_01vid001.flv 00:57.8 flv/fd_01vid002.flv 02:48.8 flv/fd_01vid003.flv 01:41.7 flv/fd_01vid004.flv 00:59.9 flv/fd_01vid005.flv 02:46.3 flv/fd_01vid006.flv 02:28.9 flv/fd_01vid007.flv 01:42.8 flv/fd_01vid008.flv 05:10.5 flv/fd_01vid009.flv 01:44.7 flv/fd_01vid010.flv 01:02.9 flv/fd_01vid011.flv 01:36.9 flv/fd_01vid012.flv 00:58.8 flv/fd_01vid013.flv 00:56.9 flv/fd_01vid014.flv 01:10.8 flv/fd_01vid015.flv 02:12.9 flv/fd_01vid016.flv 03:21.8 flv/fd_01vid017.flv 00:45.0 flv/fd_01vid018.flv 02:43.0 flv/fd_01vid019.flv 01:24.5 flv/fd_01vid020.flv 04:06.7 flv/fd_01vid021.flv 04:37.8 flv/fd_01vid022.flv 03:17.4 flv/fd_01vid023.flv 02:19.8 flv/fd_01vid024.flv 01:59.8 flv/fd_01vid025.flv 01:03.9 flv/fd_01vid026.flv 04:45.7 flv/fd_01vid027.flv 00:28.9 flv/fd_01vid028.flv 00:41.9 flv/fd_01vid029.flv 00:21.0 flv/fd_01vid030.flv 01:13.9 flv/fd_01vid031.flv 03:33.7 flv/fd_01vid032.flv 00:22.8 flv/fd_01vid033.flv 00:13.9 flv/fd_01vid034.flv 00:20.5 flv/fd_01vid035.flv 00:32.7 flv/fd_01vid036.flv 00:21.0 flv/fd_01vid037.flv 00:20.0 flv/fd_01vid038.flv 00:24.9 flv/fd_01vid039.flv 01:07.9 flv/fd_01vid040.flv 00:21.0 flv/fd_01vid041.flv 00:31.0 flv/fd_01vid042.flv 00:18.8 flv/fd_01vid043.flv 00:47.9 flv/fd_01vid044.flv 01:04.9 flv/fd_01vid045.flv 02:23.8 flv/fd_01vid046.flv 02:07.8 flv/fd_01vid047.flv 02:54.8 flv/fd_01vid048.flv 00:21.9 flv/fd_01vid049.flv 00:33.9 flv/fd_01vid050.flv 00:21.0 flv/fd_01vid051.flv 00:27.9 flv/fd_01vid052.flv 00:21.0 flv/fd_01vid053.flv 00:44.9 flv/fd_01vid054.flv 00:24.0 flv/fd_01vid055.flv 00:41.9 flv/fd_01vid056.flv 00:17.8 flv/fd_01vid057.flv 00:59.9 flv/fd_01vid058.flv 02:37.8 flv/fd_01vid059.flv 01:58.9 flv/fd_01vid060.flv 00:21.0 flv/fd_01vid061.flv 00:47.9 flv/fd_01vid062.flv 00:55.9 flv/fd_01vid063.flv 00:15.0 flv/fd_01vid064.flv 01:00.9 flv/fd_01vid065.flv 00:17.0 flv/fd_01vid066.flv 00:33.8 flv/fd_01vid067.flv 00:20.0 flv/fd_01vid068.flv 00:37.9 flv/fd_01vid069.flv 00:44.0 flv/fd_01vid070.flv 04:18.7 flv/fd_01vid071.flv 00:22.0 flv/fd_01vid072.flv 00:25.9 flv/fd_01vid073.flv 00:17.0 flv/fd_01vid074.flv 00:25.0 flv/fd_01vid075.flv 04:50.6 flv/fd_01vid076.flv 00:59.0 flv/fd_01vid077.flv 00:20.9 flv/fd_01vid078.flv 00:28.0 flv/fd_01vid079.flv 00:13.0 flv/fd_01vid080.flv 00:41.0 flv/fd_01vid081.flv 01:03.9 00:16.2 00:14.8 00:44.9 00:19.5 00:43.4 00:22.4 00:24.8 00:15.0 00:38.6 00:19.1 00:42.3 00:16.1 00:52.3 00:34.8 00:47.4 00:29.2 01:42.8 00:41.0 01:36.9 00:43.4 00:57.7 00:35.6 00:25.6 00:49.3 01:28.3 ???????? ???? ?? 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ????? ?????? ???????? captivate? ? ? ? Introduction 1 00:00 Introduction to Financial Management00:00 1 Forms of Business Organization 2 00:00 Proprietorships 3 00:00 Partnerships 4 00:00 Partnerships (continued) 5 00:00 Corporations 6 00:00 Limited Liability Companies (LLCs) 7 00:00 Bases for Comparing Various Business00:00 8 Organizational Forms Number of Owners & Ease of Startup 9 00:00 Number of Owners & Ease of Startup (continued) 10 00:00 Investor Liability 11 00:00 Investor Liability (continued) 12 00:00 Equity Capital Sources 13 00:00 Equity Capital Sources (continued) 00:00 14 Firm Life & Liquidity of Ownership 00:00 15 Firm Life & Liquidity of Ownership (continued) 16 00:00 Taxation 17 00:00 Taxation (continued) 18 00:00 Corporate and Personal Taxes 19 00:00 Summary: Sole proprietorships & Partnerships 20 00:00 Summary: Corporation 21 00:00 Summary: Hybrid Business Entities 22 00:00 (LLCs) Why We Focus on Corporations 23 00:00 Why Corps. Maximize Value 24 00:00 Self Test 1.1 25 00:00 26 00:00 Self Test 1.2 27 00:00 Self Test 1.2 Answer 28 00:00 Self Test 1.3 29 00:00 Self Test 1.3 Answer 30 00:00 Financial Goals of the Corporation 00:00 31 Self Test 1.4 32 00:00 Self Test 1.4 Answer 33 00:00 Self Test 1.5 34 00:00 Self Test 1.5 Answer 35 00:00 Self Test 1.6 36 00:00 Self Test 1.6 Answer 37 00:00 Self Test 1.7 38 00:00 Self Test 1.7 Answer 39 00:00 Self Test 1.8 40 00:00 Self Test 1.8 Answer 41 00:00 Self Test 1.9 42 00:00 Self Test 1.9 Answer 43 00:00 Factors that affect stock price 44 00:00 Is stock price maximization the same00:00 45 as profit maximization? Stock Prices and Intrinsic Value 46 00:00 Determinants of Intrinsic Value and 00:00 Prices (Figure 1-1) 47 Stock Self Test 1.10 48 00:00 Self Test 1.10 Answer 49 00:00 Self Test 1.11 50 00:00 Self Test 1.11 Answer 51 00:00 Self Test 1.12 52 00:00 Self Test 1.12 Answer 53 00:00 Self Test 1.13 54 00:00 Self Test 1.13 Answer 55 00:00 Self Test 1.14 56 00:00 Self Test 1.14 Answer 57 00:00 Some Important Trends 58 00:00 Percentage of Revenue and Net Income00:00 Overseas Operations for 10 59 from Self Test 1.15 60 00:00 Self Test 1.15 Answer 61 00:00 Business Ethics 62 00:00 Self Test 1.16 63 00:00 Self Test 1.16 Answer 64 00:00 Self Test 1.17 65 00:00 Self Test 1.17 Answer 66 00:00 Self Test 1.18 67 00:00 Self Test 1.18 Answer 68 00:00 Agency/Fiduciary relationships 69 00:00 Conflicts Between Managers and Stockholders 70 00:00 Self Test 1.19 71 00:00 Self Test 1.19 Answer 72 00:00 Self Test 1.20 73 00:00 Self Test 1.20 Answer 74 00:00 Role of Finance in a Typical Business Organization 75 00:00 Responsibility of the Financial Staff 76 00:00 Self Test 1.21 77 00:00 Self Test 1.21 Answer 78 00:00 Self Test 1.22 79 00:00 Self Test 1.22 Answer 80 00:00 Every Job is a Finance Job! 81 00:00 CHAPTER 1 ANSWER SET Introduction 82 00:00 to Financial Management Question 1-1 83 00:00 Question 1-1 Answer 84 00:00 85 00:00 Question 1-2 Answer 86 00:00 87 00:00 Question 1-3 Answer 88 00:00 89 00:00 Question 1-4 Answer 90 00:00 91 00:00 Question 1-5 Answer 92 00:00 93 00:00 Question 1-6 Answer 94 00:00 95 00:00 Question 1-7 Answer 96 00:00 97 00:00 Question 1-8 Answer 98 00:00 99 00:00 Question 1-9 Answer 100 00:00 101 00:00 Question 1-11 Answer 102 00:00 103 00:00 Question 1-15 Answer 104 00:00 105 00:00 Question 1-16 Answer 106 00:00 ? ? Script ? ? ? Script This Page is Menu? of ?Lectrue.? ? ? ? ???? Welcome to Financial? Decisions? and ? ? ? ? ? ?I? am ?Professor Henry ?Wong ?and? today ?we ? ? ? going ? ? ? ? discussing ?Chapter ? ? ? ? ? ? ? ? ? ? to? Financial? Management. In? this? chapter ?we ? ? ? ? ? ? ? a ? ? ? ? overview ? ? what financial management is all about. We start off in this chapter by discussing the different forms of business organizations that are available in the market place. ? ? ? ? ? ? ? ? ? Markets. ? ? ? Henry Wong ? ? ? ? 1 ? ? are ? ? ? to be ? ? ? ? ? ? ? ? ? ? 1: Introduction ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? will cover ? brief ? ? ? ? ? of ? ? ? ? ? ? And then number 2,organization. specifically about corporations and the goals of the corporation, and then 3 we will talk about how we maximize shareholder value in corporations. Then we will talk about some recent trends affecting corporations that all financial managers should be aware of. And finally, we end the chapter discussing some of the inherent conflicts between managers and shareholders within corporations. will talk Forms of business? ?we ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 3 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? There are four primary types or forms of about whatorganizations. First is the sole proprietorship, or sometimesby one sole individual who is solely unincorporated company that has only one owner. Compare that with as liable for all of the venture’s liabilities. This ais what we call unlimited liability. Soas a sole proprietorship except it is It is the personal business with the sole owner of a proprietorship to coupleventure’s liabilities not covered by that venture itself.aware of.does that mean? That means that if you openand“mom mean pop” shop or a 7-11 store down the a partner yourself, then that is called a sole unlimited liability, and weslips and on and in that store,unlimited only can sue the store but they cansecond type of partnership which is called sue the limited partnership, can come after your personal assets.general you own athat or a house or any other kind of has unlimited liability,person second form of business two owners. Now, there are a pay a of different of partnerships the should be So there the general partnership, we “general” because who an owner will what liability means. partner car manages but Proprietorships. ? ? ? ? ? ? ? ? first ? ? ? ? business ? a proprietorship ? ? (sole is. It is a business venture ?owned ? called proprietorships. ? ? ? ? ? an( responsible )for? the day-to-day ?operations of? that? business as? well? the ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?organization, which1is ? ?partnership, which is the same ?thing ? what? exactly ?is ? ? ? ? ? ? ? ? ? ? ? ? ? an? unincorporated? obligation ? ? ? ? ?or ?more 2 ? ? ? ? ? ? ? ? ? ? (limited partnership)? ? ? ? kinds ? ? ? ? ? ? ? ? ? ? ? ? ? you ? ? ? ? (generalwhat First, ? ? ? ? is(limited partners)? ? ? ? ? ?a? ? ? ? and ? ? ? ? ? ? ? ? ? ? ? everyone ? ? ? is ?street? by ?or ? ? ? ? ? ? in ?this ?partnership2 has ? ? ? ? ? ? ? ? 1 ? If C-corporations?go ? falls ?discuss ? ? ? ? they not ? ? ? ? ? ? ? ? ? ? ?But there is the sue you personally, ? ? ? not ? ? ? can ? C-corporations ? ? ? ? ? ? ? ?they and in this partnership? there ?is ? ? ? ? if? ? ? S-corporation ? ? 7the? partnership,? which ? ? ? ? ?they ?can? sue ? ? ? S-cor First, let's ? ? ? talk ? ? 4 ? ? ? ? ? 1 ? ? ? ? ? actually proprietorship)? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 2 ? ? ? ? ? ? This is ? you personally, but ? S-corporations ? ? ? ? ? ? ? ? ? ? a So ? partnership ? ? ? ? ? ? ? ? 2 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??????????? ? ? ? ? ? (partnership-general)? ? ? ? ? ? ? ? ? ? ? unlimited liability? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? of ? ?? ??? ?? partner)? ? ? ?? ????? ? ??? ? ? ? ? ? ? ? ? ? ? ? ? ? proprietorship. ? someone ? ??? ?90% ????? 1 ? ? Sub Chapter S corporations? ? ? and ? ? only ? ? they 5 ? ? ? ? ? ? ? ? ? ? asset, ? ? ? ? ? you More on partnerships. Let’s ?compare ? ? ? ? ? ? ? ? ? ? ? ? 2 with ?what? a? partnership? ?? ??????????????????????????????? ?? ?? ?? ?? ?? ? ? ? ? ? ? by? two? or? more? individuals? who ? ? ?jointly ? ? ?personally ? ? ? ? ? ? ? the ? ? ? ? ? ? liabilities.? So ?this ?is ?? ?? ?? ?? ?“joint???????????????????is?? ?? ?1 ?? ?? ?? ? ? action? treats ? ? ?of ? ? ?partners’ ?equally ? ? a ? ? ? ? ? ? ?what ?does ?this ?actually? mean? ? ? ? ? ? ? ? that? if ?for? some? reason a ? ? ? ? ? ? a ? ? ? ? ? ? ? ? ?company ? ? the ? ? ? ? ? ? ? ? ? ? borrowed money ?from ?all? of ?a? sudden decides ?to ? ? ? the ? ? ? ? ? ? ? ? ? ? ? ? the ? ? ? ? ? ? ? ? ? ? not paid the ? ? ? ? ? ? ? ? ?is ? ? ? ? ? ? ? ? ? ? ? ? ? ? that not ? ? ? ? ? one ? ? ? ? ? liable,? but all ? ? ? owners are ? ? ? ? ? liable ? ? ?that ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ? is. A partnership is a business venture owned ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? are ? ? ? ? and ? ? ? ? ? ? liable ? ? ? ? ? venture’s? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? called ??????? liability.” It ?? where legal ? ? ? ? ? ? ? ? ? all ? ? the ? ? ? ? ? ? ? ? ? ? ? as ? group. Now ? ? ? ? ? ? ? ? ? ? ? ? ? This means ? ? ? ? ? ? ? ? ? ? ? creditor, ? bank that the ? ? ? ? or ? ? partnership has ? ? ? ? ? ? ? ? ? ? ? ? ????? ? ? ? ?? ?????? ??? ? ??? ?????? ??? ????? ?? ? ? sole proprietorships ? ? ? ? ??? ? for ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? sue ? ? partnership because ? ? partnership has ? ? ? ? ? ? ? loan back and ? in default, that means ? ? ? ? ? only is ? ? partner ? ? ? ? ? ? ? ? the ? ? ? ? ? ? jointly ? ? ? ? for ? ? loan as well. More on partnerships. ? ? ? ? compare joint liability with joint and several liability. In this case it allows a subset of the partners to be the object of the legal action related to the partnership and excludes specifically other partners that are not part of it. This is called joint and several liability. So for example if a creditor is suing a partnership because it has defaulted on a loan, under joint and several liability the banks can go after only a couple of the partners instead of all of the partners if the partnership agreement has outlined joint and several liability. ? ? ? Let’s Finally,talkend with limited partnerships. Before we were talking about general partnerships, which again in a general partnership, everyone is liable for the firm’s liabilities. In the limited partnership, however, it is actually managed by a general partnership which again has unlimited liability, but it’s investors are called limited partners, and in this sense, they limit their limited partner liabilities in that partnership to only the amount of their equity capital contribution to the partnership. So, if you are a limited partner in a limited partnership, you are an investor in that partnership and if the partnership is ever sued by a creditor or a customer or anyone else and they decide to come after the owners of the partnership, then all you would stand to lose as a limited partner is just what you invested in the first place. This is the ideal benefit of being in limited partner Next we we about ?corporations.? ? ? ? ? ? ? and ? ? ? ??????? joint ? ? several liability? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? A corporation the discussion ? ? ? ? hybrids, the as many? people ? ? ? ? ? ?owners? which ? shareholdersLLC( this case, from theCompanies) ? ? ? assets.? companiesvery business organizations partnership or a ? ? ? entity that ? ? ? ? ? or assets of the actual firm’s LLC? ? ? it ? ? ? different than a ? ? owned by “members” ? ? ? ? of ?shareholders with ? ? ? ? liability. Now? for all ? ? ?Andand ? again ?is called are ?the same thing as shareholders, but in ? legal sense, ? ? ? ? their investors “members”? instead ? shareholders. LLC? ? ? ? ? ? takes ? ? ? ? ? 1 9 7 0 ? ? ? ? ? 8 0 ? ? ? ? ? the partnership you essentially have a division liability. ? this ? ? ? liability. It means that creditors can seize the corporation’s assets but have no ? ? LLCagainst the ? ? ? ? Now again, it ? ? ? assets. Finally we end is ? ?legal ? ? ? with? theseparates ? ? ? personal ? ? ? call them, ?LLCs, or ?the stands?for? “limited liability companies.” Limited? liability ?So?? ?? ?is? ??are? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?sole ?? ?? ?? ?? ?? ?? ?? ?? ?? ?a?? ??instead?? ??because?? ?? ?? ?? ?? ?? ?? limited?? ?? ?? ?? LLC??????of?????????intents??????purposes, ???????????limited??????????????????????????????????????????the?????????????????LLCs ?call????????????????????????????recourse ? ??of?? ?? ? ?? ?shareholder’s? personal ? ? ? the most? favorable? aspects ?of ? ? ? ? ? ? ? ?different ? ? ? ? ? ? ? ? ?from ?partnership ?law and ? ? ? ? ? ? ? ? ? ? and ? ? ? ? ? ? ? ? ? ? ? ? ? ? into? a? hybrid entity ? ? form? whatLLC? now? ? ? ? C-corporation?is ? ? ? ? ? ?a? relatively ? ? ?phenomenon ???? ?? ???? ( ? Sub Chapter? in ?? ?? ??American ?? ?? ?? ?? ?? ?? ?? ?S-corporation ? ? ? ? ? ? ? taking? off ? ? ? IRS?? ? ? ( Sub Chapter S) 80s ? ? ?that’s ?when ?you saw ? ?lot? of ?these ? ? ? 2 ? ? ? ? ? ? ??? ? ? ? ? ? ? ? ? ? in ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ? LLC ? ? ???????? ???? ?????? ? ? ? ? ? ? ? ? ? ? ? start ? ? ? ? ? until ? ? ? ? ? ?? ? ? ? ?? ? ? ??? ? ???? ? ?? ?? ?? ???? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? members ??? ???? ??? ?? ????? ????? ? ? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?each of LLC ? ? ? ? ? organizations ? ? ? ? ? ? ? ? ? ? ? ? corporation law ? ? combines them together? ? ? ? ? ? ? ? ? ? ? ? ? to? ? ? ? ? ? ? we ? ? ? call a ? ? ? ? ? LLC ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? new ? ? ? IRS???? business organization C) the ?? ?? ?? ?? ?? marketplace. It? actually didn’t ? ? ? ? ? ? ? ? ? ? ? ? ? ? the late 70s and early ? ? and ? ? ? ? ? ? ? ? ? a ? ? ? ? ? organizations starting to get formed. The major incentive to form a company as a limited l ???????? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? LLC. An ? ? ? actually ??????? a ??? ? ? ? ? ? and ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? limited ?liability after ? ? ? ? ? ????? So, a person in ? ? ? ? ? ? ? ? ? ? ?businesswith ? ? ? first ? ? ? ? ? ? ? have to? ? ?sue the ? kind of? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? and ? ? ? ? Well, ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?different ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? And ? ? ? ? ? ? ? ? ? ? alone ?this ?is ? ? ? ? majority ? ? ? ? ? ? ? ? ? ? ?in ? ? ? ? ? ? ? ? ? ? ?growing ? whether? or ?not they should ? to ?maximize shareholder ? ? ? ? ?are organized? as? corporations. ? ? ?or ? ? ? ? ? ? ? ? ? ? ?the liability ?those ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? are directly, they cannot come whatever various assets that you this limited liability status. ? ? in this chapter ? ? ? ? ? ? why for of organizations ? America that are ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? wealth ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? It Whenalthough you ? ? ? breaching? a? contract ? for ? ?customer? and ? theysue? you ? decide whatcompany ? business ? ? ? ? ? ? ? ? ? ? ? ? ? ? your car, house ?or ? ? ? ? arepersonal ? ? ? ? for ? ? ? ? have? because ?of ? ?business organization? forms, and ? ? ? this5 reason we? discuss five ofathe major criteria affecting how a person should decideand prosperous and that wantbe formed as a proprietorship, as a partnership, as a corporation,is because it of hybrid entity. Andof their owners. And of course there are some disadvantages to being a corporation which we’ll discuss in a few slides. But before we talk about that, let’s talk about the other kinds of corporation. The corporation that we have been discussing so far has been called a C-corporation, for Sub Chapter C of the IRS code. There is also a S-corporation - ‘S” as in Superman, and this is from Sub Chapter S from the IRS code, and this is basically the sa America starts a ? time,they ? form. some kind limits five things are: ? ? the? ? ? ? ? ????? ? ? ? ? ? entity they want to start? ? ? ? ? ? ? ...
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