FMGT 1116 Lecture Notes - Legal Personality
Document Summary
Accounting an information system identifies, measures, records and communicates relevant, reliable, consistent and comparable information about a company"s economic activities helps decide what will make the company better. Internal users people that are involved in managing and operating the organization everyday. Proprietorship owned by one person legal liability : no limitations the owner is liable for all the debts in the company taxation: non-taxable. Access to capital : limited a separate entity not a separate legal entity from its owner. Partnership owned by two or more people, called partners (limited life) legal liability : no limitations taxation: non-taxable. Access to capital : average when created, an agreement defines : the initial investment of each partner each partner"s duties/works the division of net profits or losses the conclusion or settlement made upon death or withdrawal of a partner. The owner is liable for all the debts in the company.
