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Micro 9

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Gale Pooley
Gale Pooley

Micro 9

Economia e finanças
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Exam 2 Review
Microeconomics Lecture 9 Basic Business Structure
Questions?
Capital will go where it is wanted, and it will stay where it is well treated. It cannot be driven; it can only be attracted.
Capital will go where it valued the most
Firm An organization that organizes the six capitals
Types of Firms Proprietorships Partnerships Corporations
Issues Complexity Liability Taxes Raising Money Control
Proprietorship one owner easy to create one tax unlimited liability hard to raise money ends with death
Partnership two or more owners easy to create combine talents all are liable disagreements ends with death
Corporation one to many owners limited liability raise financial capital does not die with shareholders harder to create more regulation double taxation
Number Revenues Proprietorships 70% 4% Partnerships 10% 16% Corporations 20% 80%
Dividends portion of profits paid to shareholders
Raising Money Retained Earnings Sell Ownership Shares Borrow
Financial Statements Income Statement Balance Sheet
Income Statement Revenue - Expenses = Net Income What happened between two dates?
Balance Sheet What I own What is the status on a specific date? What I owe What I am worth = Assets Liabilities Net Worth Must balance

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