ACCTMIS 2200 Lecture Notes - Lecture 1: Sole Proprietorship

• School: Ohio State University
• Department: Accounting and Management Info
• Course: ACCTMIS 2200
• Professor: Marc Smith

Document Summary

Organizational forms of businesses: sole proprietorship, partnership, corporation. Business owned by two or more persons. Funding to finance a start-up: debt financing, equity financing. Consists of borrowing funds from individuals or entities called creditors. Requires funds to be repaid with interest. Consists of raising funds through owner investment and selling shares of ownership (stock) No repayment is legally required though investors often receive dividends. Dividends paid to investors are not tax deductible. Regardless of the form of business organization and the means used to finance the company, it is necessary to have a system that captures the results of your business. The means by which we measure and describe the economic activities of a business and communicate these results to interested users. Main types of accounting information: managerial accounting. Used by people inside the company to make decisions: financial accounting.