Operations

Partnership: two or more people own a business and they both share in the assets, liabilities, and profits.

Sole propietor: is the only person that receives the profits and the losses of the business.

Corporations: charactered or registered by a state, it operates apart from its owner, needs a board of directors, a certificate of incorporation is necessary, and it is more complex.

Protects original work (written materials) but does not protect the idea itself.

They invest but do not get involved on daily operations of the business.

Are another way of financing for starting a business.

1. Ledger income amount

2. Substraction of goods sold to achieve a "gross profit" amount.

Gross profiy is the amount before you substract the other expenses.

3. After substracting any other expenses a "net profit"amount is totaled.

Designed to record, summerize, and analyze financial activities.

Examples of cash in: cash receipts, checks, credit.

Examples of cash out: stamps supplies, inventory, bills for advertising.

Weekly records: bills to be paid, amounts owed to the business, payroll, taxes, insurance, quality control, inventory, general office records.

Monthly records: cash-flow statement, profit and loss statement, balance sheet.

Used to protect inventions, it protects ideas for products.

Used to identify a business product.

Look to make quick profits from their investments.

Helps business owners to determine income from sales, costs for obtaining income,, expenses, and net profit, or loss.

A financial statement that shows how much a business has earned.