Final Review - Final Review Current Events Operation Twist...

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Final Review
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Current Events Operation Twist Crisis in the Euro Zone Yield Curve
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Business Organization Sole Proprietorship: Single person ownership Cheapest business type to form Single taxation as individual income Unlimited Liability, Limited Lifetime Hard to raise funds Partnership: Owned by small group.
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Business Organization Corporation Treated as a distinct entity (individual) Limited Liability Ownership easily defined and transferred (via stock) Double Taxation: Corporate Income taxed as well as dividends received by owners.
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Agency Problem What should the goal of management be? Agency Problem: A person or organization(Principal) hires someone to represent them (Agent). The agent’s incentives are not aligned with the principal and agent acts for their own benefit. How does this problem show up in Corporations? How is it mitigated?
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External Financing Needed Does this balance sheet follow the fundamental law of accounting? Does this result make sense? Why?
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This note was uploaded on 12/05/2011 for the course ENGINEERIN 111 taught by Professor Melihabulu-taciroglu during the Fall '11 term at UCLA.

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Final Review - Final Review Current Events Operation Twist...

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