Lecture+Notes+-+Week+1

Lecture+Notes+-+Week+1 - MGT160 Week 1 Introduction Chapter...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1-1 MGT160 • Week 1 – Introduction – Chapter 1 – Chapter 2 – Chapter 3 Forms of Business Organization Three major forms in the United States • Sole proprietorship • Partnership –General –Limited 1-2 • Corporation –S-Corp –Limited liability company
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1-2 Sole Proprietorship Advantages Disadvantages Business owned by one person • Advantages – Easiest to start – Least regulated – Single owner keeps all of the profits – Taxed once as • Disadvantages – Limited to life of owner – Equity capital limited to owner’s personal wealth – Unlimited liability 1-3 personal income – Difficult to sell ownership interest Partnership Advantages Disadvantages Business owned by two or more persons • Advantages – Two or more owners – More capital available – Relatively easy to start – Income taxed once as • Disadvantages – Unlimited liability • General partnership • Limited partnership – Partnership dissolves when one partner dies 1-4 personal income or wishes to sell – Difficult to transfer ownership
Background image of page 2
1-3 Corporation A legal “person” distinct from owners and a resident of a state • Advantages – Limited liability – Unlimited life – Separation of ownership and managemen • Disadvantages – Separation of ownership and management (agency problem) – Double taxation (income taxed at the corporate 1-5 management – Transfer of ownership is easy – Easier to raise capital taxed at the corporate rate and then dividends taxed at personal rate, while dividends paid are not tax deductible) S-Corporation and Limited Liability Companies (LLC) See Handou • See Handout
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1-4 U.S. Corporation Balance Sheet Table 2.1 2-7 The Balance Sheet • Net working capital – Current Assets minus Current Liabilities
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/18/2011 for the course MGT 160 taught by Professor Staff during the Fall '08 term at UC Davis.

Page1 / 15

Lecture+Notes+-+Week+1 - MGT160 Week 1 Introduction Chapter...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online