Merchandising & Forming a Corporation

© 2014 Cengage Learning. All Rights Reserved.

Learning Objectives

© 2014 Cengage Learning. All Rights Reserved.

LO1 Distinguish among service, retail

merchandising, and wholesale
merchandising businesses.

LO2Identify differences between a sole

proprietorship and a corporation.

LO3 Explain the relationship between a

subsidiary ledger and a controlling account.

© 2014 Cengage Learning. All Rights Reserved.

Merchandising Businesses

● Goods that a business purchases to sell are called

merchandise.

● A business that purchases and resells goods is

called a merchandising business.

● A merchandising business that sells to those who

use or consume the goods is called a retail
merchandising business

● A wholesale merchandising business buys and

resells merchandise primarily to other
merchandising businesses.

SLIDE 2

Lesson 9-1

LO1

© 2014 Cengage Learning. All Rights Reserved.

Forming a Corporation

● A corporation is an organization with the legal

rights of a person which many persons or
other corporations may own.

● The assets or other financial resources

available to a business are called capital.
(This term is used for corporations and non corporations.)

SLIDE 3

LO2

Lesson 9-1

Continued on next slide.