Term
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Definition
- Business owned by one person
- simple to esstablish
- owner controled
- tax advantages
- any income from the company goes on your personal income
- you get tax breaks on you car or car ect.
- owner personally liable
- anything bad that happens becasude of the company, you are held personally liable
- financing dificult
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Term
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Definition
- Two or more owners
- simple to establish
- shared control
- broader skills and resources
- the other partner can have knowledge that one lacks
- tax advantages
- personally liable
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Term
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Definition
- Seperate legal entity owned by stockholders
- Easy to transfer owneship
- greater capital raising potential
- lower legal liablity
- no one person is blamed and the company is better prepared to handle and thing bad that happens
- unfavorable tax treatment
- double taxation
- company is taxed on income and so are theemployees on any money they make from the company
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Term
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Definition
- managers who plan,organize and run a business
- marketing managers
- production supervisors
- volume, wage rates and cost control
- finance directors
- dividend policy, debt and equity
- company officers
- long-term growth, performance measurement and overall vision
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Term
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Definition
- Investors: use the infmoration to buy,holdor sell stock
- Creditors: use information to evaluate risks of granting credit or lending money
- others
- regulatory agencies: determine if a company it complying with the laws
- tax authorities
- customers: check that the company you get supplies from are going to stay around from the term of your contract with them
- labor unions: they want to see proof of why the company acting as it is
- economic planners: figure out how the rise and fall of certain businesses will affect others
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Term
Financing Activities (2 types) |
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Definition
- Debt financing
- borrowing creates liabilities
- back loans
- debt securities
- goods on credit or payables
- equity financing
- selling stock creates stockholders' equity (owner's equity)
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Term
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Definition
| people to whom the company owes money to |
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Term
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Definition
The amount that is owed to creditors in the form of debt and other obligations |
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Term
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Definition
| An amount owed to a bank for money that is borrowed. It is a type of liablity |
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Term
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Definition
debt securities sold to investors that must be repaid at a particular date some years in the future |
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Term
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Definition
a way for a company to earn funds by selling shares of stock to investors |
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Term
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Definition
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Term
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Definition
Anything that you put time/money/effort into that you hope to grow in the long term by buying and selling long term assets - obtaning resources or assets to opperate the business
- such as land, buildings, vehicles, computers, furniture and equipment
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Term
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Definition
Resources owned by a business - Property, plant and equipment
- cash
- one of the more important assets
- investments
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Term
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Definition
The day to day stuff - selling goods
- providing services
- manufacturing
- cost of sales
- advertising
- payment of employees
- paying utilities
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Term
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Definition
the amount earned from the sale of products. This therefore increases assets - EX: intrest revenue, sales revenue, service revenue
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Term
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Definition
goods available for future salesto customers
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Term
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Definition
the right to recieve money in the future
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Term
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Definition
The cost of assets consumed or services used to generate revenue - EX: cost of goods sold, selling expenses, marketing expenses, administrative expenses,intrest expenses, income taxes
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Term
Accounts payable (other examples) |
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Definition
the obligation to pay for goods whichhave been purchased on credit from suppliers - other examples: intrest payable, wages payable, sales taxes payable, property taxes payable, income taxes payable
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Term
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Definition
When revenues exceed expenses Revenue - Expenses = Net income |
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Term
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Definition
| when expenses exceed revenues |
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Term
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Definition
Shows how successfully your business performed during a period of time [image] |
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