Textbook Notes (369,205)
Canada (162,462)
Business (358)
BUSI 1003 (12)
Chapter 1

Chapter 1

3 Pages
126 Views

Department
Business
Course Code
BUSI 1003
Professor
Patti Proulx

This preview shows page 1. Sign up to view the full 3 pages of the document.
Description
Chapter 1 – Roles ofAccounting in Business Business – Aorganization where resources such as material and labour are used to provide goods or services to customers Types of Business – Service business – Provide services rather than products such as repairs ● Manufacturing business – Change resources into products that are sold ● and merchandising business – Sell products that they purchase from other busi. Forms of Business ● Proprietorship – 1 owner of the business ● Partnership – More than one owner ● Corporation – Many owners of a company, shares (Part owner of the company) ● Have to share financial statements ● Organized under state or federal statues as a separate legal entity ● Dividends – Share profits with shareholders (amount per stock) Considering Choice of Form of Business ● Ease of Formation – ex. Harder to form a corporation then partnership ● Ability to raise capitol – ex. Corporations raise capitol through selling stocks ● Legal Liability ● Taxation – Proprietorship and partnership business' owners are taxed individually. Corporations have to pay Corporation Income Tax ● Limitation on Life Form Ease of Legal Liability Taxation Limitation on Access to Formation Life of EntityCapitol Proprietorship Simple No limitation Nontaxable Yes Limited Entity Partnership Simple No limitation Nontaxable Yes Average Entity Corporation Complex Limited Taxable Entity No Extensive Liability Stakeholder – a person or entity with an interest in the economic performance an well being of a company Decision Making and Business Stakeholders ● Capitol Market Stakeholders – Shareholders, markets and bank ● Providers of major financing for the business. Provide money to start business and continue operations ● Interested in profits and if they can pay back ● Product or Service Market Stakeholders – Customers and suppliers (don't want busi. to close) ● Buyers of products or services, want continued success, warranty ● Government Stakeholders – CRA, Corporations Canada, Ontario Ministry of Government Serv. ● Collect taxes and fees from the company and it's employees
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit