Exam (elaborations)
RSM100 Lecture Notes
- Course
- Institution
RSM100 Lecture Notes
[Show more]
Seller
Follow
denicetho
Content preview
RSM100 Lecture NotesA and D of corporations? - ANS-Advantages:
- when the company goes bankrupt, it cannot go after anything other than what you
invested in it
- more capital as people are more likely to invest in a corporation
-you can defer taxes
-easier to operate internationally
-perpetual life
-easier to change ownership
Disadvantages:
- double taxation: personal level and business level
- decision making is slower
- legal costs
-more paperwork to continue and dissolve the corporation
-more complex accounting
A and D of a sole proprietorship - ANS-Advantages:
- single owner so it is easy to form and dissolve
- gives the owner the most management fleixbility
- owner has the right to profits after paying all business-related bills and taxes
disadvantge:
- the owners personal financial liability for the business's debt
- the business can only operate with resources limited to the owners funds and money
- financial limitations can keep the business from expanding
- owner must handle a wide rnage of management and operational tasks (they may not
have skills in every area) which can cause the firm to not grow and even damage
- higher chance of being audited by the Canada Revwnue Agency because they do not
have a third party to look at their reports.
- lacks long-term continuity as personal circumstances can terminate the business.
A and D of partnerships - ANS-Advantages:
- allows for greater financial capability
- nice when someone or each individuals have a particular skills that benefit the
business
Disadvantages:
- exposed to unlimited financial liability, bares full responsibility for the actions of the
other partner
, - if one partner defaults, it is the responsbility of all the partners. Therefore there are
limited liability partnerships which only limie the liabilities of a partner to the value of
their interests in the company.
- if a partner wants to the leave the firm they have to find a new partner to buy their
interest in the firm
A and D of not-for-profit businesses - ANS-a:
- do not issue shares because they do not pay dividends to owners and their owernship
rarely changes
- exempt from paying income taxes
d:
- must meet strict deadlines to keep their nont-for-profit status
what is wealth creation - ANS-combination of inputs, supportive envrionment, means of
production, somoene who will pay more than the cost
A and D of franchises? - ANS-A:
- prior performance record
- recognizable company name/brand
-proven business model
-tested managment program
-savings through volume purchases
D:
- initial franchise fees
-future payments
- linked to reputation and management
- franchise agreement restrictions
- tight control
financing for small businesses - ANS-seed capital: the money needed to start the
business
debt financing: bank loans, friends and family, finance companies, credit cards
equity financing: angel investors, venture capitalists
why do small businesses fail? - ANS-lack of financial support, lack of management
experience, government regualtions
why do people become entrepreneurs? - ANS-to be their own boss, to have job security,
to have financial success, to obtain a better quality of life
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller denicetho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.31. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now