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Corporations - Coggle Diagram

- - - - current assets (prop will used within single yr)
        
        inventory = any product made by corp, held or stored and can be sold
        
        trade receivables = time to make payment by customer / corp sells products to customer gives time to customer for payment
        
        pre paid expense = corp rents out prop, not using now but will use within one yr
      - non current assets (pro held longer than 1 yr)
        
        PPE (property, plant, equipment) = using now or will hold for long, depreciates after sometime
        
        intangeble assets
        
        patents = exclusive rights to sell particular product
        
        goodwill = price of company's reputation; owning a MCD franchise, knowing that it is not open yet but whenever you open, it is going to run
        
        investment in associates = investing in competitors or other corps, 20-49% investment is asset as you get ROI, more than 50% is not as both are combined into one statement
    - - current liabilites (must pay within 1 yr)
        
        trade payables = funds owed to suppliers for raw materials
        
        future taxes = tax installements for current yr
        
        short term loans = bank loans to be paid off within 1 yr
      - non current liabilities (need not pay within 1 yr)
        
        bank loans, debts, outstandings
    - - share capital
        
        common share cap = ipo, buy back, issue new shares
        
        pref shares cap = ipo, buy back, issue new shares
      - retained earnings = reinvest profits into company rather than giving out divs, retained earnings not equal to cash, separate coloumn in equity section of balance sheet
      - non controlling interest (owns >50% stake in another corp) = suppose company x has 80% stake in another comp y, then 80% of asset liab equity of comp y mentioned x's balance sheet, whereas rest 20% mentioned in company y's balance sheet as non controlling interest
  - - - financing activities = issuing new shares, divs
      - investing activities = sale of capital assets, divs from subsidiary
      - operating activities = funds from business ops
- - - - general partner = part in day to day ops; personal assets @ risk
      - limited partner = no part in day to day ops; personal assets not @ risk
  - - - shareholders' personal assets not @ risk
      - shareholders dies = corp still exists
      - shares traded = ownsership transferred
      - raise capital by issuing shares
      - raise funds to grow business
      - hire managers for day to day ops
    - - lots of rules & regulations to be followed by a corp
      - taxed twice = first when income earned; second when divs paid out
      - expense to establish corp; expensive to keep running (auditing entire annual cashflow to fit well within rules)