Management and Organizational Studies 2310A/B Chapter Notes - Chapter 1: Transact, Chief Executive Officer, Secondary Market

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Danny Morrison

Document Summary

Chapter 1: corporate finance and the financial manager. 1. 1: valuation principle: shows hot to make the costs and benefits of a decision comparable so that we can weigh them properly. Make comparisons among investments, loan options, and projects. Sole proprietorships: business owned and run by one person: straightforward to set up, no separation between the firm and the owner, business income is taxed as personal income. Investors cannot hold an ownership stake, limits firm the raise additional money: owner has unlimited personal liability for firms debt, life of sole proprietorship is limited to life of owner, diff to transfer ownership. Income from the partnership is taxed at the personal level: the income is split among partners according to their ownership in the partnership. General partnership: partnership owned and run by more than one owner. all general partners have unlimited liability. Lender can require any partner to repay all the firms debts.