Finance 4315 - b.ii.1. Limited partners are limited to his...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: b.ii.1. Limited partners are limited to his investments b.ii.2. General partner are liable for the firms 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...
View Full Document

This note was uploaded on 12/05/2011 for the course ECON 3311 taught by Professor L during the Spring '11 term at University of Texas at Dallas, Richardson.

Ask a homework question - tutors are online