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The Firm and Its Environment - Coggle Diagram
The Firm and Its Environment
Sole proprietorship
One owner
Unlimited liability
All profits
Limited resources
Limited life
Partnership
2+ owners
Shared capital
Shared profits/losses
Unlimited liability
Corporation
Legal entity
Limited liability
Raises capital: stocks, bonds
Unlimited life
Easy ownership transfer
Double taxation
Managers ≠ owners
Stocks
Ownership
Variable return
Bonds
Debt
Fixed return
Private Ltd (UK)
Shares not public
Friends, banks, venture capital
Public Ltd (UK)
Shares on stock exchange
Prospectus
Board of Directors
Management
Shareholders
Annual meeting
Memorandum
Name, purpose, capital
Articles
Rights, duties