财务的管理基础斯坦利布洛克Chapter (1).pdf

Financial Management. 2013. South China University of Technology FOUNDATIONS OF FINANCIAL MANAGEMENT PART 1 INTRODUCTION Lecturer: Renee, Ren Gu 1 What is Corporation? 1.1 Forms of Organization Sole proprietorship Partnership Corporation First Type: Sole Proprietorship Advantages Disadvantages Easiest to start Owners must bear all costs Least regulated No others to share burden or add expertise Single owner keeps all the Unlimited liability for debts profits and malpractice Taxed once as personal Difficult to sell ownership income interest Second Type: Partnership Advantages Disadvantages Relatively easy to start Each partner has unlimited liability for debt and malpractice Pooled expertise and Partnership dissolves when resources one partner dies or wishes to sell More capital available Difficult to transfer ownership Income taxed once as Share profits with partners personal income Third type: Corporation Advantages Disadvantages Limited liability for debts and Separation of ownership and malpractice management Separation of ownership and Double taxati