AFM131 Study Guide - Midterm Guide: Double Taxation, Property Law, New Idea

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Robert Sproule

Document Summary

Chapter 4 the role of government in business. 102: crown corporations, laws and regulations, taxation and financial policies, government expenditures, purchasing policies, services. 173: ease of starting and ending the business, being your own boss, pride of ownership, leaving a legacy, retention of company profit, no special taxes. 173-174: unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited lifespan. 175: more financial resources, shared management and pooled/complementary skills and knowledge, longer survival, shared risk, no special taxes. 176: unlimited liability, division of profits, disagreement among partners, difficult to terminate. 179-180: limited liability, more money for investment, size, perpetual life, ease of ownership, ease of drawing talented employees. 181-182: extensive paperwork, double taxation, two tax returns, size, difficulty of termination, possible conflict with stockholders and board of directors, initial cost. For comparison of forms of business ownership refer to figure 6. 6 pg. How owners affect management: employees managers officers board of directors owners.