MGMT 30A Chapter Notes - Chapter 1: Net Income, Retained Earnings, Current Asset
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MGMT 30A Full Course Notes
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Document Summary
Sole proprietorship = business owned by one person: simple to set up and gives you control over business. Corporation = business organized as separate legal entity owned by stockholders (or shareholders) Most businesses start as sole/partner corporations. Taxes and legal liability: sole proprietorship & partnership receive more favorable tax treatment w/ full liability to debt & legal obligations, corporate stockholder pay more tax with no personal legal liability. Hybrid forms of businesses most common hybrids = limited liability companies (llc) & Subchapter s corporations: combine tax advantages with limited liability. More proprietorships & partnerships in u. s. , but corporations generate more profit. Accounting = information system that identifies, records, and communicates the economic events of an organization tot interested users. Two groups of user of accounting information. Internal users = managers who plan, organize, run a business. Marketing managers, production supervisors, finance directors, company officers.
