Card Set Information
3 types of Businesses
Forms of business
Proprietorship, Partnership,corporation, limited liability company
owned by one
owned by 2 or more
organized under state or federal statues
combines attributes of a partnership and a corporation
person or entity with an interest in the economic performance and well being of a company.
to obtain the necessary funds to organize and operate the company
to obtain assets such as buildings and equipment to begin and operate the company
To earn revenues and profits
legal obligation to repay the amount borrowed according to the terms of the borrowing agreement.
When a compay borrows from a vendor or supplier
Bond obligations, borrowing of money over a period of time
Interest that is due for borrowed money
The basic type of stock issued to owners
refers to all the types of stock a corporation may issue.
The resources owned by a corporation.
Distributions of earnings to stockholders
Physical characteristics in a resource owned by a corporation
Non physical characteristics for example a patent.
Assest paid for before being consumed.
Rights to payments from customers who purchase merchandise or services on credit