Ch 11 Notes - Chapter11Notes 09/04/200709:59:00 Chapter 11:...

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Chapter 11 Notes 09/04/2007 09:59:00 Chapter 11: Accounting For Equity Transactions Types of Businesses - Proprietorship Owned by a single individual Ease of formation Unlimited Liability Personal assets in the eyes of the law are not separate from business assets. Taxes once at the personal level Equity Terminology Capital and Withdrawals o When cash goes up capital goes up. o When cash goes down withdrawal accounting goes up. - Partnership More than one individual Ease of formation Unlimited liability Transfer of ownership-difficult o Any time ownership changes the original business dies and the new business begins or lives. No continuity of existence Taxed once at the personal level o Partnership does not pay income taxes. Equity Terminology Capital and Withdrawals – for each partner. - Corporations Not easy to form o Must file paperwork, and then go to the state and when state says your a business your then a business.
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This note was uploaded on 10/03/2011 for the course BUS 222 taught by Professor Jennings during the Spring '07 term at University of Maine Orono .

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Ch 11 Notes - Chapter11Notes 09/04/200709:59:00 Chapter 11:...

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