BUSI 1101 Chapter Notes - Chapter 1: Sole Proprietorship

• School: Memorial University
• Department: Business Administration
• Course: BUSI 1101
• Professor: N Wans

Document Summary

For it to have value, it must be prepared by individuals with high standards of ethical behaviour. Ethical decision-making is critical in the preparation of accounting information & to the decision makers who rely on this information. Most individuals in business are ethical: actions are both legal and responsible, consider the organization"s interests when they make decisions. Extensive rules of professional conduct to guide their behaviour with each other & the public: most companies have codes of conduct that outline their commitment to ethical behaviour in their internal and external relationships. Learning objective 2: describe the primary forms of business organization. A business owned by one person: aka proprietor. Often called sole proprietorship: single owner. Gives the owner control over the business. Only a relatively small amount of money (capital) is needed to start a proprietorship. Owner receives any income, suffers any losses, and is personal liable for all debts: known as unlimited liability.