Finance 4315 (Autosaved) - b.ii.1 Limited partners are...

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Finance 4315: 8-25-11 I. Chapter 1: Corporate Finance and the Financial Manager a. Why Study Finance? a.i. Objective: maximize value of the firm b. Four types of Firms b.i. Sole Proprietorship b.i.1. Owner is the firm and the firm is the owner b.i.2. Very easy to setup b.i.3. Traditionally new businesses may be set up this way b.i.4. Same social security #; don’t have to show up anyone your books b.i.5. Unlimited liability; Lender will recognize this and so when you’re raising funds you are limited to what you own; b.i.6. Difficult to transfer ownership especially with death of owner b.ii. Partnership
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Unformatted text preview: b.ii.1. Limited partners are limited to his investments b.ii.2. General partner are liable for the firm’s debt b.iii. LLC b.iii.1. No general partners b.iv. Corporations b.iv.1. No liable for owners, only their investment b.iv.2. Not liable for personal obligation of owner b.iv.3. Double taxations b.iv.4. Collections of outstanding shares are known as equity b.iv.5. Owners are usually known as shareholders b.iv.6. S Corporations b.iv.6.a. Cannot have more than 100 members b.iv.6.b. Firm not subject to corporate taxes b.iv.6.c. Individual taxes II....
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