财务管理英文Chapter2.pptVIP

Chapter 2 The Business, Tax, and Financial Environments Topics Covered The Business Environment The Tax Environment The Financial Environment Forms of Business Organization There are 4 major forms in the united states: Sole Proprietorships Partnerships (general and limited) Corporations Limited liability companies Sole Proprietorship --A business form for which there is one owner. This single owner has unlimited liability for all debts of the firm. Sole Proprietorship Partnership -- A business form in which two or more individuals act as owners. Types of Partnerships Limited Partnership有限责任合伙公司 -- Limited partners have liability limited to their capital contribution资本认购 (investors only). At least one general partner is required and all general partners have unlimited liability. Partnership Advantages Two or more owners More capital available Relatively easy to start Low setup cost, higher than sole proprietorship Income taxed once as personal income Corporation -- A business form legally separate from its owners. Corporation Limited Liability Companies -- A business form that provides its owners (called “members”) with corporate-style limited personal liability and the federal-tax增值税 treatment of a partnership. Limited Liability Company (LLC) Limited liability Centralized management集中式管理 Unlimited life Transfer of ownership without other owners’ prior consent事先同意 Limited Liability Company Advantages Limited liability Eliminates消除 double taxation No restriction限制 on number or type of owners Easier to raise additional capital Disadvantages Limited life (generally) Transfer of ownership difficulties (generally) Generally Accepted Accounting Principles (GAAP)公认会计原则 The matching principal匹配原理 of GAAP dictates命令 that revenues收入 be matched with expenses. Thus, income is reported when it is earned, even though no cash flow may have occurred. Calculating Taxable Income Calculating Corporate Income Taxes Income Tax Example BW’s corporate taxable income for this fis