ACC-1B Lecture Notes - Lecture 1: Legal Personality, Sole Proprietorship, European Cooperation In Science And Technology
Document Summary
Stakeholder=people or organizations affected by a business (customers, employees, suppliers, regulators, society, lenders and owners) All stakeholders should believe they are receiving value from a business/each stakeholder believes the value they receive should exceed the value given. Resources needed to start and operate a business. Stockholder"s equity aka owner"s equity=money provided to a business by owners through either an initial investment or the retention of profits. A liability is a financial claim or debt owed to a party that is not an owner of the business. Business uses the $ to acquire assets. Asset=an economic resource that a business owns and can inruse to operate the business. Interest= the expense of using borrowed money for a period of time. Make money by borrowing it or having others provide it. For profit businesses= attempt to create an exchange or sale where in revenue exceeds expenses and creates profit. Not for profit businesses= creates an exchange where revenue = costs.
