BU127 Lecture 1: Chapter 1 & Appendix 1A
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Investors who buy small percentages of large corporations look for 2 sources of possible gain: They expect to receive a portion of what the company earns in the form of cash payments (dividends) Hope to eventually sell their chare of the company at a higher price than they paid. Lend money to a company for a specific length of time (charge interest) Exchange of money between company and its lenders and owners. Company purchases or sales of stores (buying and selling items) Understanding company"s financial statement = understanding its operations (access to what it sells) Purchase products and access to services demanded by customers --> market the products and series services available for sale --> sell products and services to customers --> collect cash from customers and pay suppliers. Collects and processes final information about an organizations business activities and reports that information to decision makers.