MGIS 317 Lecture Notes - Lecture 17: Business Plan, Debenture, Decision-Making

• School: University of Calgary
• Department: Management Information Systems
• Course: MGIS 317
• Professor: Ronald Schlenker

Document Summary

If a company is trading profitably, some of these profits will be taken in tax by the government and some is nearly always paid out to the owners or shareholders (dividends). If any profit remains, this is kept (retained) in the business and becomes a source of finance for future activities. These are the three main providers of company finance. Receive an investment cannot be claimed back from the company, except when it ceases trading. To check on business viability before loan or overdraft is agreed, this is both a responsibility to the banks and the companies shareholders. To provide regular statements of amount owing and terms of repayment annual return on investment in shares. To receive capital growth through an increase in share price. To receive repayment of capital at the end of the loan term. To provide credit to encourage the business to purchase stock. Part ownership of the company in proportion to the number of shares owned.