ADMS 3530 Lecture Notes - Working Capital, Retained Earnings, Financial Statement

• School: York University
• Department: Administrative Studies
• Course: ADMS 3530
• Professor: Irvin Pestano

Document Summary

Finance is a body of concepts , theories and models dealing with the raising of capital or money or funds, and the allocation of the funds by: the individuals- personal finance the governments- public finance, and. Incorporate under cbca canadian business corporation act or under provincial laws. Public: traded in the securities market, allows for easy raising financing and ask for publicized detailed financial information in its annual reports. It ensures that management is acting in the shareholder"s best interest: legal separation of ownership and management, the treasurer deals with financial activities. Advantages: limited liability, ease of ownership, flexibility in financing: public company enjoys convenience of selling shares in the stock market and raising funds, whereas private company finds it time consuming and subject to legal restrictions. Disadvantages: corporations pay tax on profits while shareholders pay taxes on dividend received ( double taxation). note that owners and business are taxed separately in a corporation.