ACCT 201 Lecture Notes - Lecture 1: Sole Proprietorship, Limited Liability, Managerial Finance
Document Summary
Finance- science and art of managing money. Financial services- design and delivery of financial products to public. Managerial finance- duties of financial manager in business. Financial manager- manages financial affairs of business. Sole propertiorship- business owned by one peon. Unlimited liability- sole proprietor can lose everything. Partnership- business owned by 2 or more people. Articles of partnership- written agreement to establish business partnership. Limited liability- stockholders not responsible for entire debt of company. Common stock- basic form of corporate ownership. Board of directors- group elected by stockholders to lead the brigade. Ceo- corporate official responsible for day-to-day and is elected by bod. Earnings per share- amount earned during period on each share of common stock = total earnings / # of common stock shares outstanding. Risk- chance that outcome may differ from that which is expected. Stakeholders- groups that have an economic link to firm. Business ethics- standards of conduct in commerce.
