| A | B |
|---|
| Owner-Managers | (Is common in new businesses) When the founders also function as managers of their company |
| Creditor | Lend money to a company for a specific length of time= They hope to gain by charging interest on the money they lend |
| Investors | Whether investors are groups (such as Exeter who recently bought all of Maxidrive Corp.) or individuals who by small % of large corporations, they make their purchases hoping to gain in 2 ways: (1) they hope to receive a portion of what the company earns in the form of DIVIDENDS (=cash payments) and (2) eventually sell their share of the company at a higher price than they paid |
| Financing Activities | Are when a company borrows more money or pays back money to its lenders and receives additional funds or pays dividends to owners |
| Investing Activities | Are when a company buys/sells items such as equipment/machines used in producing its final product (that it sells to consumers) |
| Operating Activities | > Purchase parts and labor > Manufacture disk drives > Sell disk drives to customers > collect cash from customers and pay suppliers >... |
