Tuesday, September 28, 2010

Basic finance

#1 I don't like finance.
#2 I don't understand any 'finance' term except profit.
#3 I like attending my Basic Finance class because my lecturer cut the 3 hours class one hours short, spent 10 minutes on break, 10 minutes on whining how tired he was and another 10 minutes of telling stories about other people.
#4 I love money, no doubt. $$$

I have my finance midterm tomorrow and I'm nowhere from starting now, so I figure we should study together. My teacher always taught me to share my knowledge with others, so never say I never share anything with you guys, ok. 

So, where should we start? Let's see, do you know that there are 3 types of legal forms of business? I bet you don't. The first one is sole proprietorship, a business owned by a single individual. For example, you have your clothing store and managed it all by yourself, from the inventories, promotion, accounting etc. By the end of the month, the profit all goes to you, that's it if your store is making money.

Wide awake still or you start yawning now? Please bear with me. The second one is partnership. Same situation as the sole proprietorship except that you have partners. I mean, partner in business ok, But this partnership has 3 types: general partnership, limited partnership and limited liability company.

The last one is corporation. It is a business entity that legally functions separate and apart from its owners. Owner's liability is limited to the amount of their investment in the firm. Got it? Meaning, you invest your money and what you got is based on how much you invested. Like buying share and bond. The ownership can be transferred by selling the certificate. For example, the company that you're invested in is losing money, so what should you do? Sell you stock la, in my opinion.

You still with me? I'm yawning already, are you? Let's take 5, ok. Hey, do you know that HIMYM, Vampire Diaries, Chuck, Gossip Girls and Supernatural are all airing their new seasons? I need to get my hand on those. 

I think we had done enough here. Let's call it a day and watch those series. Hehehe

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