COMM 217 Lecture Notes - Lecture 1: Financial Statement, Deferred Income, Income Statement
25 Jan 2017
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Document Summary
The players that contribute to the proper function of a business: Managers / owners: these are the proprietors of the business, the ones that usually found the business. Creditors: these are the people or institutions (like banks) that lend money to managers who are in need of additional money to complete business operations. They charge interest on the loaned money to serve as a type of compensation. Investors: these are individuals who buy small portions of large corporations. In any business, players involve themselves in the following operations: Collect cash from customers and pay creditors. Economic activities are carried out by individuals who work for themselves and/or entities and organizations. Some of those entities and organizations include: for profit, not for profit, government organizations. Organizations can be set up legally as one of three forms: Partnerships: this is where there is more than one owner and most operations and profits are divided amongst all owners.
