Management and Organizational Studies 1023A/B Study Guide - Final Guide: Final Offer, Financial Intermediary, Internal Audit

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Global economic systems depend on reliable and accurate financial reporting. Accounting identifies and records economic events of an organization, communicates information to interested users. 2 categories of users- internal and external internal users- organize and run a business, make decisions external users- investors, creditors ethical behaviour- actions are legal and responsible, rules or codes of conduct are used to guide ethical behaviour. Proprietorship- business owned by one person, simple to set up, full control, has unlimited liability, no distinction between the business and the owner. Partnership- a business owned by more than one person, normally formalized in a written partnership agreement, each partner has unlimited liability for all debts. Unlimited liability- any partners can be forced to give up their personal assets to repay the debt. Partnership profits are reported as self-employment income and taxed on each partners" personal income tax return. Corporation- a business organized as a separate legal entity owned by shareholders.