Term
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Definition
| the process of making and managing expenditures on long-lived assets |
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Term
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Definition
| the proportions of a firm's financing from current and long-term debt and equity |
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Term
| net working capital (pg 3) |
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Definition
| current assets minus current liabilities |
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Term
| sole proprietorship (pg 4) |
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Definition
a business owned by one person.
-the cheapest business to form
-no corporate income taxes
-owner assumes all liability
-limited to life of proprietor |
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Term
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Definition
a business owned by two or more people
-general and limited partners
-general partners manage business and assume all liabilities
-limited partners only invest and are limited in liability to their investment
-terminated when general partner dies
-income taxed only as income to partners |
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Term
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Definition
a business that is its own entity, but is owned through shareholders -ownership is easily transferred between shareholders -split into shareholders, board of directors, and management officers -unlimited life -shareholders' liability limited to their investments
-corporation is taxed along with dividend income of shareholders (double taxation) |
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Term
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Definition
| a conflict of interest between an owner (the principal) and management (the agent) |
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