Management and Organizational Studies 1023A/B Lecture Notes - Lecture 1: Air Canada, Walmart, Retained Earnings

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Accounting is the language of business: measures business activities, processes data into reports, communicates results. A business event: changes the value of a firm. Accounting records economic events of an organization and communicates to interested users. Two categories of users: internal- managers who plan and run a business (decisions include pricing, marketing, capital budgeting, resource allocation, etc. , external- investors, creditors, and others (tax authorities, regulatory agencies, customers, labour unions, etc. ) Rules and codes of conduct to guide ethical behavior. Proprietorship: owned by one person who has control, simple to set up, unlimited liability, same legal entity (company and person considered same for taxing), separate accounting entity (must separate personal financials from the business"s financials) Partnership: owned by more than one person, formalized in written agreement, unlimited liability, same legal entity, separate accounting entity. Corporations: separate legal entity owned by shareholders, indefinite life, limited liability, public or private (if shares are publicly traded)