BMGT 340 Chapter Notes - Chapter 1: Starbucks, Sole Proprietorship, Secondary Market
15 Sep 2016
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Chapter 1: corporate finance and the financial manager: four types of firms, sole proprietorship a. i. Business owned and run by one person that are typically very small with few employees a. ii. Easy to set up, which causes many of these to form but revenue compared to other companies are very small a. iii. Limited in that there is no separation between the firm and the owner, and that investors cannot take ownership stake in the firm a. iv. Owner has unlimited personal liability for the debts and defaults that he/she must pay out from personal assets a. v. Life of sole proprietor is limited to the life of the owner, and hard to transfer ownership a. vi. Disadvantages are greater than advantages if it wants to grow: partnerships b. i. All partners are liable for firms debt b. ii. Ends when at least 1 partner dies or withdraws b. iii.
