Five Functions of business
Responsible for managing the financial resources of the business.
Finance
A business that obtains and distributes goods to consumers.
Merchandising
What is the equation for profit/loss?
Revenue - Expenses = Profit/Loss
property owned by a business or company beardless of its value.
Assets
one or more limited partners
Partnership
Determines the wants and needs of a consumer and devises a system for distributing goods and services to meet consumer demand.
Marketing
A business organized to covert raw materials into finished projects.
Manufacturing
What is the equation for operating profit?
Gross Profit - Operating Expenses = Operating Profit
What is the accounting equation?
Assets = Liabilities + Owner's Equity
Mr. Scannell and Mr. Lawlor have a lemonade stand. They are the only owner's of the company and all of their personal belongings (houses, vehicles, properties, etc.) are at risk if the business fails.
Partnership
Ensures capable employees are given opportunities to succeed in a safe work environment.
Management
A business that exists to provide service in exchange for a fee.
Service
What is the equation for gross profit?
Revenue - Cost of Goods Sold = Gross Profit
ownership of assets that may have debts or other liabilities attached to them.
Owners equity
Limited Liability Corporation
LLC
Plans, organizes, directs and controls day to day activities of the business
Operations
Generally accepted accounting principles
GAAP
Operating Profit - Taxes = Net Income
owners share in the
Owners Equity
A business owned by one person whose personal possessions are at risk if the business fails.
Sole proprietorship
Responsible for providing useful information internally and externally parties, Also accounting and information systems are the backbone of the business.
Accounting
A + L = OE
Assets + Liability = Owners Equity
Give another name for an income statement.
Statement of Operations, Statement of Earnings, Profit & Loss Statement (P&L), Statement of Revenue & Expense, Earnings Statement, etc.
What are owned to others
Liability
A business entity that is legally separate and distinct from its owners.
Corporation