MGCR 211 Chapter Notes - Chapter 11: Market Price, Employee Stock Option, Stock Split

• School: McGill University
• Department: Management Core
• Course: MGCR 211
• Professor: Erica Pimentel

Document Summary

Sole proprietorship: single-owner business (less concern about creating accounting reports b/c not reporting to shareholders. Doesn"t distinguish personal income and company"s income (combine) owner"s capital; os the owner"s equity section that has one account. Have unlimited liability they assume all the risk if the business runs into trouble. Partnership: two or more individuals decide to do business together. Responsibilities are set out in the partnership agreement. Separate account for each partner the partner"s capital account. There also exists a drawing account that keeps tracks of the amounts withdrawn by the partner during that period. Have unlimited liability - assume all the risk if the business runs into trouble. General partners: make day to day decisions for the company but have unlimited liability. Corporation: (know what a corporation is) differs from a sole proprietorship and a partnership in 3 ways limited liability, taxation, and its status as a separate legal entity.