...Business Ownership Name: ACC/561 August 6, 2012 Instructor: Business Ownership The biggest decision an individual can face is with when starting a business is selecting the type of business he has interest in. Will his business be a sole proprietorship, a partnership, corporation, or limited liability company. Each of the four business types has many advantages and disadvantages regarding taxes and liability. The individual who wants to start-up the business should take into consideration many factors concerning cost, control, and the amount of risk he is willing to assume. Sole Proprietorship is the most common type of business. Sole proprietorship is the easiest type of ownership and is the easiest to enter and leave. The benefit to a sole proprietorship is cost of start-up is low, owner controlled, and profits go to the owner. The tax advantages are the individual is not paying separate from his personal taxes the taxes are generally lower for the sole proprietor. The disadvantages of a sole proprietorship are limitless liability, if the business has one owner the business could close if the owner passed away, and it may be hard to raise capital. If more than one individual join to start up a business, the advantages and disadvantages increase. ...
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...Unit 4 Assignment 1: the three forms of business ownership Damara Santiago BU1110 10/24/14 There are three major forms of business ownership they are sole proprietorship, partnership and corporation. With each form of business ownership comes different risks, advantages and disadvantages. Which form of ownership you decide to choose depends on your desire for control and your tolerance for risk. Your original choice of business ownership may change as your business begins to grow. The first major form of business ownership is sole proprietorship, in a sole proprietorship one person owns and operates a business. You do not have to take any formal action to form a sole proprietorship. As long as you are the only owner, this status automatically comes from your business activities. In fact, you may already own one without knowing it. If you are a freelance writer, for example, you are a sole proprietor. Like all businesses, you need to obtain the necessary licenses and permits. Regulations vary by industry, state and locality. If you choose to operate under a name different than your own, you will most likely have to file a fictitious name, (or an assumed name, trade name, or DBA name). You must choose an original name; it cannot already be taken by another business. A partnership is a single business where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares...
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...Business purpose and ownership To: The Chief Executives of Nike and Trafford Council From: Tom. Jackson, Management Consultant Date: 21st October As a consultant management you (Nike/Trafford Council) have given me the task of issuing a report about your company and how they are set up. Within this report I shall be reviewing both business set ups. Nike is a Global business as the business is known all over the world with Nike clothing and accessories being sold world wide. In terms of the type of business that Nike operates in they are a Public business as anyone can invest into Nike on the New York stock exchange. Nike belong to the secondary industrial sector as Nike’s largest aspect of their business is manufacturing their goods such as shoe wear and general sports equipment. Trafford Council is a regional business as it only serves the people of the Trafford Metropolitan Borough of Greater Manchester. Trafford Council as a business is not for profit as it serves to fund trafford residents with local needed necessities such as: local schools, parks, street lights etc. Trafford Council belongs to the tertiary sector of business as Trafford Council is a service thus it is within the service sector which goes under the tertiary sector. As a globally recognised organisation Nike’s main business purpose is for profit maximisation, by helping to meet profit maximisation Nike have vast global advertising to help them sell as many Nike accessories as possible...
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...Forms of Business Ownership Characteristics Sole Proprietorship: The business and the owner are the same entity; there is no distinction between the two. It is very easy to start-up. It can be difficult to raise working capital. • Liability – The business owner is fully liable for all business debts. • Income Taxes – All profits or losses are passed through the business to the business owner. The business owner reports profits or losses on their individual income tax reports. The business itself is not taxed as an entity. • Longevity or Continuity of the Organization – Generally, the business ends if the owner dies or stops conducting business activities. The business owner can have plans and authorizations in place that would allow the business to continue. • Control – The business owner has complete authority in the daily management of business operations. There are no partners. • Profit Retention – Profits or losses go to the business owner. • Location – To do business outside of its original state, the sole proprietorship will file a Doing Business As statement in each state it intends to do business. Foreign qualification is not required. • Convenience or Burden – The business owner may have to file for state and/or local permits. General Partnership: Two or more people decide to do business together. The business and the owners are the same entity; they are not separated legally. It is very easy to start-up. It can be difficult to...
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...An example of a Sole Proprietorship business in my town would be The Evans Barber and Salon. Their business is filed a single entity for tax liability purposes. As a company they are not registered with the state as a limited liability corporation or company. Being the owner they do not have to pay income tax separately for they only report income or loses or individual tax returns. Landscapers, housekeepers, and mom/pop stores are also examples of Sole Proprietorship. They also do not have to register with the state. Their income can be reported on their individual tax return, because they work alone. A partnership business example in my town would be the First Steps Daycare of Cuthbert Ga. The only daycare in town. A partnership is the type of business where multiple individuals, called general partners manage the business and are equally liable for its debts. Examples of other partnership are doctor offices, dental offices, and eye doctors. The partners in these offices that manage the business, they are equally liable for the debts incurred with that business. A Limited liability partnership is used by professional associations. The liability on the partner is limited to the amount he or she may have invested in the company. This action keeps each partner from being held accountable for their wrong doings of another partner in their partnership. Examples of limited liability partnerships are Baker Tilly Virchow Krause, Deloitte, and Ernst & Young. The examples listed...
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...Solicitors provide legal service to help people meet their needs. They are not making a profit or loss. This is their purpose. What is franchise? A franchise is an agreement or license between two parties which gives a person or group of people (the franchisee) the rights to market a product or service using the trademark of another business (the franchisor). The franchisee has the right to market the product or service using the operating methods of the franchisor. The franchisee has the duty to pay the franchisor certain fees and royalties in exchange for these rights. The franchisor has the duty to provide these rights and support the franchisee. Franchising is not a business or an industry, but a method used by businesses for the advertising and distribution of their products or services. Both franchisor and franchisee have a strong fixed interest in the success of the brand and keeping their customers happy. What is sole trader? When setting out in business, you will be setting up the business on your own, using your own personal capital to get started. If this is the case you will be known as a Sole Trader, the sole trader is the simplest business to develop. What is public and private limited company? Types of limited company Most small businesses that choose for limited company status become private limited companies rather than public limited companies (PLCs). The main differences between them are that: * PLCs can raise money by selling shares on the stock market...
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...Unit 1: The business environment Help sheet 1.1.1 P1 Describe the type of business, purpose and ownership of two contrasting businesses To achieve P1, you must complete Task sheet 1.1.1, a case study, as well as Worksheets 1.1.1 to 1.1.4. You must also write a detailed presentation about two organisations. • You must ensure that the two organisations chosen are very different. For example, a large plc, such as Tesco, and a charity, such as Save the Children. This will make it easier to compare the environments. • It is a good idea to choose organisations that you are interested in, but that also have a large amount of information available. Therefore, spend some time researching a few organisations that might be of interest to see which one will make this task the easiest. • The same organisations will be used for tasks other than P1 so look ahead in the assignment to make sure the information you will need is available. • Once you have chosen your organisations, you need to research them in order to be able to identify the type of businesses they are. You must identify which scale they operate at and what sector they operate in. Make sure you give evidence and reasoning to back up your decisions. • The purpose and ownership of a business can often be seen on its website. However, you may find a phone interview very useful for collecting all the information you need. This can then be used as evidence. Remember to reference your work when necessary. ...
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...Munden BUS 280 YD2 Forms of Business Ownership Sole Proprietorship Pros: The easiest way to start a business, you decide what you want your business to be, buy whatever equipment is needed along with leasing a building and getting permits. If the time were to come that you no longer to be in business, you just simply stop because there is no one else that has a stake in the business. You get to keep the profit that the business earns and if the business does well the profit can increase to your benefit. All the taxes on a sole proprietorship are taxed as personal income of the owner. You have the advantage of being you own boss. Being a business owner is something to be proud of, if the risk pays off all of the credit goes to the owner of the business. You have the ability to leave your business to your heirs without the complications of partners being involved. Cons: When you own your own business you and the business are considered one entity. You have unlimited liability of any debts or damages that may occur, so if you were to be sued you may have to sell personal belongings in order to pay the debt. When you are in business for yourself you may not have as many resources as those in a partnership or corporation. You only know a certain amount of people which can limit the amount of resources available to you. You must commit to long hours as a sole proprietorship owner, not only do you have to make sure that the business is ran property but you may also...
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...retail book value This CARFAX Vehicle History Report is based only on information supplied to CARFAX and available as of 10/1/13 at 1:21:51 PM (EDT). Other information about this vehicle, including problems, may not have been reported to CARFAX. Use this report as one important tool, along with a vehicle inspection and test drive, to make a better decision about your next used car. Price Calculator™ Adjust the value of this 2008 Volvo S40 2.4I based on the information available in this report 1) Retail Book Value 2) CARFAX Price Adjustment™ 3) Adjusted Retail Value Begin by entering the retail book value $ 0 - $70 Below retail book value Enter retail book value here Ownership History The number of owners is estimated Year purchased Type of owner Estimated length of ownership Owned in the following states/provinces Owner 1 2007 Commercial 2 yrs. 9 mo. Texas Owner 2 2010 Personal 1 yr. 11 mo. Texas Owner 3 2012 Personal 1 year Texas Owned in the following states/provinces Estimated miles driven per year Last reported odometer reading 23,597/yr 65,247 7,650/yr 83,534 --86,944 Title History CARFAX guarantees the information in this section Salvage | Junk | Rebuilt | Fire | Flood | Hail | Lemon Not Actual Mileage | Exceeds Mechanical Limits Owner 1 Guaranteed No Problem Guaranteed No Problem Owner 2 Guaranteed No Problem Guaranteed No Problem Owner 3 Guaranteed No Problem Guaranteed No Problem GUARANTEED - None of these major title problems...
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...Background Pet ownership in the US is at an all-time high, leaving room for growth in the current market. Not only is pet ownership climbing, but spending per pet is also on the rise. Pet resorts, offering doggie daycare, training as well as grooming and boarding services for dogs have begun emerging across the country in recent years. Due to the large number of Americans who are willing to pay premium prices for pet care or those who have disposable income and the desire to provide quality car for their pets while at work is proof that grooming, daycare and training facilities for pets is greatly needed. Today, cultural attitudes toward owning pets mean that domestic animals are viewed more and more as members of the family; even pet care spending hasn’t decreased or has been little affected by the economic recession. Wagz and Wigglez is the new grooming and boarding facility for those who want to provide exceptional service for their beloved pet. Mission statement At WAGZ & WIGGLEZ, we know that dogs are part of our families, dogs are our faithful companion, our loyal friend; they can bring us so much “joy”. Let us help you show your appreciation for their unconditional love and devotion. Our facility provides quality care in grooming and no worry boarding services. We are committed to our local community and our goal is to provide outstanding quality service for our customers and their four-legged friends. WAGZ & WIGGLEZ goal also is to provide a safe, fun and healthy...
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... an important issue to address is the difference between the management of the company and the ownership of the company. The Vega Food Company had two types of stocks: The A voting shares that do not pay dividends (management) and the B non-voting shares that pay dividends (ownership). The problem in the case arises due to the thin line that divides both. Key Facts: Francisco Sr. founded Industrias La Vega, a Spanish meat-processing business that produced hams, sausages, and other delicacies for domestic and export markets. Francisco Jr., the only son of six siblings had worked closely with his father since 1976. In 1994, Francisco Jr. became president of the company when his 72-year old father was killed in an automobile accident. Francisco Jr. is the only sibling that had worked in the family business prior to the car accident. In February 1997, only Francisco Jr. and Tere (the fourth of the daughters of the family) worked at the family company in management positions. Tere joined only three years earlier. The ownership structure of Industrias La Vega had been updated only months before the car accident, mainly at the request of Francisco Jr., who was concerned about the possible loss of control of the enterprise he had jointly managed with his father for years. Nevertheless, there is no mention in the case that Francisco Jr., nor his sisters or mother, knew about the ownership structure that Francisco Sr. had planned with his lawyers. After...
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...spills of molten steel. Any attempts by workers to improve their work conditions were uniformly rejected, and Carnegie routinely crushed any of the workers’ attempts to unionize. When Carnegie decided to get out of the steel business he sold his company “lock, stock, and barrel” to a consortium of New York investors for $485 million. The company was renamed U.S. Steel, and it is still one of the largest U.S. steel- makers today.The investors paid a high price for Carnegie’s company because they knew they could use its low-cost, competitive advantage to create a monopoly in the steel industry—which is exactly what they did. U.S. Steel kept the price of steel high and made huge profits for decades. Of course, Carnegie sold his company knowing this would likely happen. This further tarnished his reputation.1 • Jones: Introduction To Business: How Companies Create Value for People I. The Environment of Business 2. The Evolution of Business © The McGraw−Hill Companies, 2007 38 Chapter Two The earliest writings about business date back to Mesopotamia in 3000 BC and were discovered by archaeologists in what is now the Middle East. Business goes back to the Stone Age, however. Economists regard the clan, or tribe, as the earliest form of organized “business” activity. The division of labor between a clan’s members into skilled hunters, food gatherers, craftspeople, priests, shaman, and sages is a good example of how these people organized their activities. (See Figure 2.1.) In fact...
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...CASE STUDY II OWNING A SLICE OF THE ACTION A DOMINO’ S PIZZA FRANCHISE 1. According to the article, Domino’s Pizza is a second largest pizza franchise, and it is called a “franchisor,” or business owner. Domino’s sells others the right to use its name and sell its products in specific geographic area. As usual, an entrepreneur, a person who risks time and money to start and manage a business, may be interested in opening his/her own business by purchasing a franchise, and is called a franchisee. However, there are many benefits of owning a Domino’s franchise. First, Domino’s is a strong global brand, and with the Domino’s reputation, new business is easier to start because the consumers are familiar with the products. Second, along with reputation of Domino’s, franchisees benefits from the national advertising programs. The franchisees are also assisted to be given the access to suppliers with the products and price, this makes the Domino’s franchise more profitable. In addition, Domino’s franchisees are not required to have experience because they will be trained and guaranteed in succeeding; therefore, owning a Domino’s franchise has a higher rate to succeed than start up a normal pizza business. In contrast, the franchisees will have great opportunities to reach to the high revenue, and Domino’s, at the same time, will earn great royalties (the fees paid to franchisor) from their franchisees. In the whole, both Domino’s and its franchisees benefit; the success of franchisees...
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...discuss how a new partner will be able to join your business or leave the business. You will also need to make sure to discuss what will happen if the business fails and make sure that the new partners have enough capital and assets to cover their share of a negative situation. Some of the advantages of allowing partners into the business are collaboration, simple operating structure, flexibility, and easy acquisition of capital. Collaboration and flexibility can vital to a small company because they make for easy decision making and simpler managing. Simple operating procedure can be tricky, while it makes for easy entry into a partnership, you two as original owners should make sure that all documents are signed and filed and that a proper partnership agreement is made and signed. Some disadvantages of a partnership include conflict with partners, authority of each partner, unlimited liability, and limitations on transfers of ownership. Conflict with partners and authority of partners can be easily handled by making up clear documents that state what a partner can and cannot do while part owner of your company. Unlimited liability is important because if one or more of the partners does not have enough capital or assets in case of an emergency, like being sued or bad investments, then individuals can come after the other partner’s assets. Limitations on transfers of ownership can be tricky because in order for ownership to be transferred, each of the...
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...issues they need to have Employee engagement. Employee engagement remains a crucial concept for internal communication. Organizations now tend to agree that engaged employees – employees who are keen to “go the extra mile” – can have a very strong positive effect on the success of the business. CanGo needs its communication professionals to focus just as strongly on communication basics and to do them very well. “Where we’ve been is just as important as where we’re going” (ashridge.org, 2014). Organizations all too often cascade their communications, pushing them down to front-line employees from the top. This means that those at the end of the pipeline rarely have an opportunity to voice their concerns or opinions. Having an employee action team will allow CanGo to create an active, two-way communication program, ensuring that everyone can add his or her voice to the dialogue. A major difficulty for CanGo is that they don’t start out on the same page on how they define engagement. This lack of clarity can cause the project to be unsuccessful. An engaged workforce is one that feels fully part of the organization’s business goals and plans. Engagement is the act of building communal ownership and accountability, for what CanGo stands for and must achieve, through an informed and involved workforce of day-to-day work practices and decisions. If CanGo can all get on the same page together and get their plans organized together and mapped out, they can all be able to work as...
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