COMM 308 Chapter Notes - Chapter 2: Corporate Finance, Financial Institution, Public Company
15 Oct 2016
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Some businesses conducted within the household (statscan considers canadian households to comprise persons and unincorporated businesses ) Four major forms of business organizations: sole proprietorships, partnerships, trusts, corporations. Sole proprietorship - business owned and operated by one person. Unlimited liability - liability not only for what is invested in business but also for any other assets owned. Trusts trust - legal organization where assets are owned by one party and managed or controlled by different party income/royalty trust - set up to invest in shares and debt obligations of company. Most income trusts are real estate investment trusts and royalty trusts. Corporation - business organized as separate legal entity under corporate law, with ownership divided into transferable shares. Board of directors (bod) elected by shareholders. 2. 2 the goals of the corporation firm should enhance owners" wealth, different from profits because it reflects value of all economic profits (today"s and the future"s)
