PSY 005 Lecture Notes - Lecture 20: Sole Proprietorship, Corporate Finance, Financial Asset
12 Sep 2020
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Document Summary
Week one introduction and goals of a corporation. Business finance is related to the decision making & strategies of corporations. Types of business organisations: sole proprietorship- business owned by one person, least regulated form of organisation. Tend to be exceptionally small and these firms are normally called micro firms (between one and nine employees: partnership- business formed by two or more individuals or entities. General partnership: one or more general partners run the business and have unlimited liability with one or more limited partners that do not participate in business. Disadvantages- unlimited liability for business means personal finances are tied up in business and can be hold reliable if company goes into debt. Limited life of the business and difficulty transferring owner ship. It is the most important form (in terms of size) of business organisation in the world. Corporations have the benefit of having limited liability therefore can"t be held personal responsible for the cooperation"s deals.
