...the decisions and does not have to engage a legal department to approve contracts. The owner of such a business can only use personal funds even though he or she may have separate checking and savings accounts for the business. The first characteristic of this form of business enterprise is liability. A sole proprietor suffers from unlimited liability. The owner becomes liable personally for all the obligations and debts of the business. The second characteristic is income taxes. Businesses pay federal income tax just like individuals. In a sole proprietorship, the owner pays income tax only once on the business income, which he or she reports on their personal income form. The third characteristic is control. In a sole proprietorship, the owner makes all the decisions concerning the business. In this business, the owner does not have to grant control to other people. The fourth characteristic is profit retention. If a sole proprietorship makes profits, the money belongs exclusively to the owner. The reason is that the owner and the business are one. The fifth is location. The owner can move or expand the business to a different state without consulting anybody. This is because the owner is the sole decision maker. The sixth characteristic is convenience or burden. The owner makes sure that the business complies with all meeting, reporting, and other regulatory requirements. There are many advantages in sole proprietorships. First, a sole proprietorship is easy to form. The...
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...the decisions and does not have to engage a legal department to approve contracts. The owner of such a business can only use personal funds even though he or she may have separate checking and savings accounts for the business. The first characteristic of this form of business enterprise is liability. A sole proprietor suffers from unlimited liability. The owner becomes liable personally for all the obligations and debts of the business. The second characteristic is income taxes. Businesses pay federal income tax just like individuals. In a sole proprietorship, the owner pays income tax only once on the business income, which he or she reports on their personal income form. The third characteristic is control. In a sole proprietorship, the owner makes all the decisions concerning the business. In this business, the owner does not have to grant control to other people. The fourth characteristic is profit retention. If a sole proprietorship makes profits, the money belongs exclusively to the owner. The reason is that the owner and the business are one. The fifth is location. The owner can move or expand the business to a different state without consulting anybody. This is because the owner is the sole decision maker. The sixth characteristic is convenience or burden. The owner makes sure that the business complies with all meeting, reporting, and other regulatory requirements. There are many advantages in sole proprietorships. First, a sole proprietorship is easy to form. The...
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...the decisions and does not have to engage a legal department to approve contracts. The owner of such a business can only use personal funds even though he or she may have separate checking and savings accounts for the business. The first characteristic of this form of business enterprise is liability. A sole proprietor suffers from unlimited liability. The owner becomes liable personally for all the obligations and debts of the business. The second characteristic is income taxes. Businesses pay federal income tax just like individuals. In a sole proprietorship, the owner pays income tax only once on the business income, which he or she reports on their personal income form. The third characteristic is control. In a sole proprietorship, the owner makes all the decisions concerning the business. In this business, the owner does not have to grant control to other people. The fourth characteristic is profit retention. If a sole proprietorship makes profits, the money belongs exclusively to the owner. The reason is that the owner and the business are one. The fifth is location. The owner can move or expand the business to a different state without consulting anybody. This is because the owner is the sole decision maker. The sixth characteristic is convenience or burden. The owner makes sure that the business complies with all meeting, reporting, and other regulatory requirements. There are many advantages in sole proprietorships. First, a sole proprietorship is easy to form. The...
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...Outline “Personal Appraisal” Kelli Barnes Everest University Outline “Personal Appraisal” 1. Clear Objectives: A. Both the individual employee as well as the organization should benefit from a fair appraisal system. B. The performance appraisal should be clear, specific, timely, and open. 2. Reliable and Valid: A. Valid information, date, reliance, and consistency should be provided in a performance appraisal. 3. Standardization: A. The criteria and standards should be well defined. B. The corporation should inform the employee of these standards. 4. Training: A. The person that is giving the appraisal should be trained on the procedures and principles of the appraisal. B. They should have the knowledge and the skills in conducting and designing appraisals. 5. Job Relatedness: A. The appraisal should relate to the job activities and the behavior and performance of the employee. 6. Balanced Trust: A. The employee should be treated with trust and a supportive manner. 7. Feedback and Participation: A. The performance appraisal should be open and participative. B. Goal setting should always include the employee and their thoughts. 8. Help Focus: A. The employee should not be personally judged through the appraisal. B. The employee should be assisted in reaching their full potential. 9. Recognition of Differences: A. The appraisal must be designed to meet the needs of...
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...Corporate Characteristics Proposal One of the most important decisions as a new business owner is deciding what type of structure will be most effective for establishing a business entity. In reviewing different business structures of an organization, Proprietorship, Partnership and Corporation, the Corporation has characteristics an entrepreneur should give valuable consideration to on establishing a new business venture. The different types of stock a corporation can consider issuing and the advantages and disadvantages of forming a corporation is valuable information is considering incorporation. Common Business Structures Proprietorship A business entity owned by one person is called a proprietorship. The company is usually small and can be started with a small amount of capital investment. Sometimes referred to as a Sole Proprietorship, the owner usually has full operational duties of the business and legal responsibilities. The owner can receive all profits of the business but also has legal responsibilities in all the debt of the business even though accounting records are kept separate from the personal records of the owner (Weygandt, Kieso & Kimmel, 2006). Partnership A business entity that is owned by two or more is called a partnership. A partnership is organized much like a proprietorship in that partners share the personal liability of the company’s debts and share the profits of the business. A partnership agreement is usually formed between...
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...to be conducted, and characteristics such as liability, taxation, continuity, profit retention and sharing, and the conveniences and burdens associated with the business. It is important for a potential business owner or owners to be educated on the different types of business organizations and rules and regulations involved in order to select the entity that best meets their business needs. Sole Proprietorship The first and most common form of business organizational structure is known as a sole proprietorship. Not only is it the most common, but it is also the simplest form of business organizational structure to establish. The primary characteristic of a sole proprietorship is that it is simply owned and operated by one person. When operating a business as a sole proprietor, the business also operates under the name of the person who is considered the owner of the business. If one were to declare an actual name for the business other than that of the owner’s name, then the business would include the term “Doing Business As,” or simply, D.B.A. An example of this would be, John Doe D.B.A. John’s Landscaping Service. This way, one can see that it is John Doe who is the sole proprietor, but also chooses to use John’s Landscaping Service as an official name for the business. In determining if a sole proprietorship is the most appropriate type of organizational structure, there are several characteristics that should be considered. The first characteristic is the general liability...
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...directly onto your personal income tax return (no double taxation). Potential employees may be attracted to the business if given the incentive to become a partner. The business usually will benefit from partners who have complementary skills. Disadvantages of a Partnership General partners have unlimited liability. Partners are jointly and individually liable for the actions of the other partners. Profits must be shared with others. Since decisions are shared, disagreements can occur. Some employee benefits are not deductible from business income on tax returns. The partnership may end upon the withdrawal or death of a partner. Corporations A corporation is different from a sole proprietorship or a partnership in that a corporation is separate statutorily created legal entity from the people who manage, own, control, and operate it. A corporation can be taxed; it can be sued; it can enter into contractual...
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...proposal to the CEO in which you discuss: The different forms of business organizations that may be selected as the basis for the business The characteristics of a corporation The different types of stocks and corresponding characteristics, which a corporation may issue The advantages and disadvantages to the corporate form of doing business Cite the source or sources of the data you used to calculate your ratios and the horizontal and vertical analysis in your paper. If you used an electronic source, include the URL. If you used a printed source, please attach a copy of the data to your paper. Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 363 Week 4 Learning Team in order to ace their studies. ACC 363 WEEK 4 LEARNING TEAM To purchase this visit here: http://www.nerdypupil.com/product/acc-363-week-4-learning-team/ Contact us at: nerdypupil@gmail.com ACC 363 WEEK 4 LEARNING TEAM Your team has been hired as consultants for a start-up business venture. As part of your analysis of the new business venture, prepare a 1,050- to 1,750-word proposal to the CEO in which you discuss: The different forms of business organizations that may be selected as the basis for the business The characteristics of a corporation The different types of stocks and corresponding characteristics, which a corporation may issue The advantages and disadvantages to the corporate form of doing business Cite the source or sources of the data you used to calculate...
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...Discussion on the community rights theory of characteristics of stock ownership Wang He Law School of Fudan University Abstract:：This article is based on the community rights theory which plays the dominant role in the contemporary academic debates about the nature of stock ownership, including the theory’s crucial points and ideas, its advantages as well as the disadvantages, then express the writer’s personal view about it. Key words：stock ownership，community rights，independence，property，one man’s company The stock ownership is used to definite shareholder’s a series of equities about the economic interests and operating management based on contribution to the investment. The Article IV in Corporate Law of china also regulate the shareholder’s rights. There are widespread debates and discussions about the characteristics of stock ownership for it’s significance to solve the problems with in the government-owned enterprise and the shared corporation, especially after the reformation in 1990s.The community rights theory holds most supporters, and it’s being taken as a popular theory. General summary and superiority of community rights theory This theory holds the view that the identity of community member in profit community is the fundamental prominent of shareholder’s rights, namely that shareholder’s rights is one of the community rights. The community rights theory was proposed by German scholar Renaud in 1875, and it divided into two main streams(single rights...
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...and Strategies Unit 1 Chapter 1 12. What are three characteristics of a sole proprietorship? Are these characteristics the same as or different from those of a partnership? Three characteristics of a sole proprietorship are 1.) the person cannot be an employee of the business, 2.) that person is solely liable for all debts of the business, and 3.) the results of operations are reported on a Schedule C which is included in the owners personal tax return. Majority of these characteristics are different than those of a partnership; however, they both share common characteristics which are the owner is responsible for the company’s debt and partners/owners cannot be employees. In a partnership, there can be more than one owner general partner and each is liable for partnership debts. Limited partners are only liable for their investment in the partnership partners if the partnerships elect to be treated as limited liability companies to enjoy limited liability. 19. Taxable Income The Warner Corporation has gross income of $560,000. It has business expenses of $325,000, a capital loss of $20,000 and $2,500 of interest income on temporary investments. What is the corporation’s taxable income? Solution: Taxable income = $237,500 $560,000 Gross income plus 2,500 Interest income minus 325,000 Expenses equals $237,500 Taxable income The $20,000 capital loss is not deductible 30. Hunter Corporation has $250,000 in gross income, $125,000 in deductible business...
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...Topic: Do you agree with the film's diagnosis that the corporation is a psychopath? Psychopathy in a psychiatry terms refers to a personal disorder. Later the name 'psychopathy' was changed to ' personality disorder' due to its inability to grow any attachment or lack of empathy. It is hard to say if the cause of this mental disorder is genetic or it resulted from a previously experienced trauma. The very important characteristic of a psychopath is their ability to successfully deceive people with their main motive being unrevealed. In the documentary movie by M. Achbar, J. Abbott, and J. Bakan the term 'psychopath' is used to describe the big corporations of our time. A corporation might not be a person but it is controlled by the people at the top and everything depends on their ethical standards and morales. If they fail to maintain it at an appropriate level the corporation becomes a psychopath in itself. Now I would like to discuss the characteristics of a psychopath listed by DSM with a reference to th corporations: Failure to conform to social norms: here, lawful behavior is the key topic. Psychopaths do not adapt their behavior to fit into the society, they rather look for an opening to use in order to fit the society to their behavior. So do the corporations. Very often corporations look for a situation (mostly in law) to take advantage of it using their workers as tools and means to reach their goal of power and profit. Deceitfulness: deceiving others...
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...proprietor. Managing, sales and finance are all performed by the sole proprietor. There is no need for any formalities or agreements when the business is run by one person. The characteristics of a sole proprietorship are the adequacies of credit and capital for the business is relatively small. The sole proprietor doesn’t share any responsibilities. ADVANTAGES * It is very easy to start a sole proprietorship. * State and local licenses and permits are the only legal forms needed. * A sole proprietor can start and terminate a business for whatever reason. * Work cannot be criticized by any bosses. * Decisions do not need to be made with a partner. DISADVANTAGES * The owner of the sole proprietorship, capital is limited by personal finance. * Fund raised from outside investors is difficult for a sole proprietor. * Talents and ability of a sole proprietor is limited. * If the owner gets sick or disable, the sole proprietor’s business will possibly decline. * Unlimited and unshared liability is the responsibility of the sole proprietor. GENERAL PARTNERSHIP With a voice in how the company is operated, each partner is fully active in the general partnership. The scope of all business activities are acted on by each partner with full authority. The characteristics of a general partnership are oral or written contract between partners. Partners agree to operate a business indicated in a business agreement. Provisions on how to settle differences...
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...is one of the main advantages of the Sole Proprietorship. The ability to file the business under the exact identity as the owner is a second advantage of this business form. Disadvantages: Since the business owner is a single person, he or she has to produce the funds for launching and maintaining the business and its operations. Eventual reliance on loans can consume a sole proprietor and the owner can accumulate a lot of debt. The owner’s personal assets and earnings could be comprised due to the “unlimited liability,” facet of the sole proprietorship. The business operations could suffer too, since they rely on the capability of the business owner-which means that if the owner passes away, the business dies with the owner. Characteristics: • Liability: Since all of the business’s earnings belong to the sole proprietor, the owner runs the grave of risk of losing his/her personal assets. The business owner is solely liable. • Income Taxes: The owner of the business and the business itself are considered to be the same entity, the owner of the business reports expenses, loss, and income via schedule C and a standard 1040 tax form. • Longevity: The business will remain in operation until the owner decides to close it down permanently. Another way the business will cease to exist is if the owner ceases to exist, or dies. • Control: Under a Sole Proprietorship, the owner of the business retains full control of it unless he/she designates someone...
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...Characteristics of sole proprietorship: Easy Setup/Capital/Legal Restriction/Equity Investment / Management/Freedom of Action/ Easy Dissolution/Easily Transferable In this type of business owner can start up easy. It does not have to file any paper work as long as the business is under their own legal name. The personal responsibility of the owner is unlimited. The money that is needed is provided by the owner. If you need more money you cannot sell shares of stock or bring someone else in as a partner. You will have to borrow the money yourself. Since there are no legal formalities this type of business can be easily dissolved. It can also be transferred to another person without any restrictions. This type of business is based on life or death and good health of the sole owner. An example of this type of business is: Cathy’s house cleaning service/ Joe’s Tire Shop/Dave’s Custom Cuts Characteristics of General Partnership: Trust/ Money/ Responsibility/ Joint Contribution and Gain/ Mutual Ownership This type has more than one owner. Contributions made by partners include money, property, services, ideas and knowledge. Partners also share in the gains of the business dividing the Characteristics 3 profits according to their agreement. If the business has losses both partners are impacted. They both make business decisions and implied authority. Sometimes...
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...Decisions and Strategies Unit 1 Assignment #12: What are three characteristics of Sole Proprietorships? * One-owner business (Dennis-Escoffier & Fortin, 2013). * Proprietor has unlimited liability (Dennis-Escoffier & Fortin, 2013). * No formal filing with the state (Dennis-Escoffier & Fortin, 2013). * May have no employees or can be a large business with many employees (Dennis-Escoffier & Fortin, 2013). * No separate tax return; individual form 1040 and Form SE (Self Employment Tax) (Dennis-Escoffier & Fortin, 2013). * Tax advantage that business loss can reduce or shelter the taxpayer’s other income (Dennis-Escoffier & Fortin, 2013). * Owner is fully liable for all debts of the business and could lose all of his or her personal assets (Dennis-Escoffier & Fortin, 2013). * Not a separate entity from the owner (Dennis-Escoffier & Fortin, 2013). Are these characteristics the same as or different from those of a partnership? The characteristics of a partnership differ from a sole proprietorship in the following: * Two or more individuals (Dennis-Escoffier & Fortin, 2013). * Can be an individual or any type of entity such as a corporation, an estate, or a trust (Dennis-Escoffier & Fortin, 2013). * Same as sole proprietorship that must pay self employment taxes (Dennis-Escoffier & Fortin, 2013). What are three characteristics of a Limited Liability Company that differs from those of a partnership...
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