HTA 602 Lecture Notes - Lecture 1: Capital Budgeting, General Partnership, Limited Partnership

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTA 602
• Professor: Bernard Mc Evoy

Document Summary

Some important questions that are answered using finance. Financial managers try to answer some or all of these questions. The top financial manager within a firm is usually the chief financial officer (cfo) Treasurer oversees cash management, capital expenditures and financial planning. Controller oversees taxes, cost accounting, financial accounting and data processing. In other countries, corporations are also called joint stock companies, public limited companies and limited liability companies. Equity capital limited to owner"s personal wealth. Partnership dissolves when one partner dies or wishes to sell. Double taxation (income is taxed at the corporate rate and then dividends are taxed at the personal rate) Hold the debt and equity of an underlying business. Distributes the income generated to the unit-holders. Not a corporation, but unit-holders do have limited liability protection. Many income trusts are now converting to corporations. Principal hires an agent to represent their interests. Stockholders (principals) hire managers (agents) to run the company.