PHIL 243 Study Guide - Midterm Guide: Current Asset, Current Liability, Accounting Equation
Document Summary
Chapter 1: 3 types of business, manufacturing, merchandising, service, 4 organizational forms of business, proprietorship: owned by 1 individual. Disadvantage- financial resources: partnership: owned by 2 or more individuals, corporation: organized under state/federal statues as a legal entity. Exp: wall-mart: premium-price emphasis: a business designs and produces products or services that serve unique needs, higher charge premium prices. Exp: bmw: business stakeholders, a business stakeholder is a person or entity that has an interest in economic performance and well-being of a business. Internal stake holder: individuals employed by the business. Government stakeholders (collects taxes and fees) = federal, state, and city governments. Product or service market stakeholders= customers and suppliers: 3 primary business activities and examples, financing activities: obtain funds to begin and operate a business. Investing activities: to obtain the necessary assets to start and operate the business. Exp: machines, buildings, computers: operating activities: production and distribution, accounting equation:
