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Corporate IssuersModule 1 of 7

Organizational Forms, Corporate Issuer Features, and Ownership

6

Concepts

0

Formulas

1

Decisions

3

Quiz Questions

Key Concepts

6 concepts covered in this module.

Sole Proprietorship

Single owner, unlimited liability, simple structure. Owner and business are legally identical. Limited life.

Partnership

General partnership: all partners share unlimited liability. Limited partnership: GPs manage, LPs have limited liability.

Limited Company/Corporation

Separate legal entity, limited liability for shareholders, perpetual life, easier capital raising, double taxation.

Public vs Private

Public: listed on exchange, liquid shares, disclosure requirements. Private: fewer shareholders, less regulation, less liquid.

Going Public (IPO)

Access to capital markets, increased liquidity. Costs: underwriting, disclosure, regulatory compliance.

Corporate Owners

Institutional investors (pension funds, mutual funds, insurance), activist investors, sovereign wealth funds, PE firms, family/founders.

Decision Frameworks

1 decision frameworks to guide your analysis.

Public vs Private ownership?

  • Public: need broad capital access, growth capital, liquidity for shareholders
  • Private: want control, confidentiality, avoid regulatory burden

Mind Map

Visual overview of how concepts connect in this module.

Organizational Forms
Sole Trader
Single owner
Unlimited liability
Simple structure
Limited life
Partnership
General: unlimited liability
Limited: LP has limited liability
Pass-through taxation
Corporation
Separate legal entity
Limited liability
Perpetual life
Double taxation
Public vs Private
Exchange listing
Disclosure requirements
Liquidity differences
IPO process

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