SMG SM 131 Lecture Notes - Lecture 1: Exxonmobil, B Lab, Fiduciary

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Fatema Fazendeiro

Document Summary

Discuss the advantages and disadvantages of the different business forms. Understand how corporations raise money by issuing stock. A business owned, and usually managed, by one person. Ease of starting and ending the business. Any debts or damages incurred by the business are your debts, even if it means selling your home, car or anything else. Two or more people legally agree to become co-owners of a business. Shared management and pooled/complementary skills and knowledge. A state-chartered legal entity with authority to act and have liability separate from its owner (stockholders) Part of a firm"s profits that the firm may distribute to stockholders as either cash or additional shares. The most basic form; holders have the right to vote for the board of directors and share in the profits if dividends are approved. Owners are given preference in the payment of company dividends before common stock dividends are distributed.