...CREATING, FINANCING, AND MARKETING A BUSINESS Creating, Financing, and Marketing a Business William B. Smith Dr. Robert Culver Lithonia Campus BUS 100 August 19, 2012 Strayer University CREATING, FINANCING, AND MARKETING A BUSINESS Pros and Cons Individuals with the intention of starting a business of their own have several options to choose from in regards to what structure that will fit their needs. For instance, a partnership means that more than one person has ownership of the company. There are different variations of a partnership such as limited and general partnerships. One particular benefit to a business that is defined as a partnership is that the work and responsibilities be shared between whomever is involved, the work load is not left up to any one individual to take on alone. The second benefit to a partnership is that it can be formed very easily, a simple verbal agreement by itself can be all that is needed to bring it together (BUSN Textbook page 76). The worth of all involved may allow the business more resources and brings additional experience to the organization. A major con in this type of business structure is, if all the participants are not on the same page in regards to setting goals, work ethic, drive, and knowledge, conflicts of interest can set in and have turbulent affects on the business. Another stipulation is that the profits must be shared between each partner involved as per the initial agreement. Partnerships can...
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...Creating, Financing, and Marketing a Business Creating, Financing, and Marketing a Business Heather Stalder Strayer University Justin Ndwiga Business 100(Mini) Creating, Financing, and Marketing a Business One of the easiest ways to start a business is to create a partnership; creating a partnership when forming a business has several advantages and disadvantages. A partnership starts with two or more parties having the same vision developing a business and contributing to the financial and operations of the business.“The simplicity and flexibility in creating a partnership may be one the main advantages of the partnership as a form of business. However, the disadvantages of the simplicity and flexibility must be carefully considered.” (Hanson, 1998) A risk you take in the partnership is that there is no requirement to have written agreement. Without a legal agreement it may be difficult for those in partnership to outline the parameters of the business relationship. If a thorough partnership agreement is agreed upon it can be executed to make the partnership flexible and workable for all involved and help alleviate the tensions that may arise in a business partnership situation. (Hanson, 1998) An upstart business has quite a few options when it comes to financing their vision. Depending on your financial needs the type of financing you choose will differ. Will the financing be long...
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...Running head: CREATING, FINANCING, AND MARKETING A BUSINESS Creating, Financing, and Marketing a Business Strayer University Business 100 JANET LARGAESPADA February 26, 2012 Creating, Financing, and Marketing a Business In business there are several forms to consider when starting the organization, this paper will be focusing on the creation of a general partnership. A general partnership is one of the simplest forms of business to create because all it really takes is an agreement to form between two or more individuals and that is it. No complex documents to submit, no issuance of private stock, no bylaws or need for a board of directors. Its simplicity is a general partnerships' biggest assets although it is not its only one. Another big benefit to the general partnership is the pass through of tax liability. From a tax standpoint, the partnership is as straightforward as the sole proprietorship. There is no tax at the partnership level. All tax consequences are passed through to the individual partners. The benefit of this pass-through tax treatment is that there is only one level of tax. This is a pretty big difference when you look at the tax structure of a corporation, who faces multiple levels of taxation. While those are the benefits of a general partnership, there are a few downsides to the structure of a general partnership as well and those can be daunting if your choice in partners is questionable. A general partnership is subject to unlimited...
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...CREATING, FINANCING, AND MARKETING A BUSINESS LEONA PARKS PROFESSOR MARILYN FITZPATRICK BUSINESS 100 FEBRUARY 24, 2012 Leona Parks Professor Marilyn Fitzpatrick Business 100 February 24, 2012 Creating, Financing, and Marketing a Business Identify the pros and cons of the partnership as a form of ownership. The simplicity and flexibility in creating a partnership may be one of the main advantages of the partnership as a form of business. The other main attraction to the partnership as a form of business is partnership tax treatment. From a tax standpoint the partnership is as straightforward as the sole proprietorship. There is no tax at the partnership level. All tax consequences are passed through to the individual partners. The benefit of this pass trough tax treatment is that there is only one tax level. The negative side is that if a business is reinvesting profits into non-tax deductible expenses, the partnership may show taxable income, but have no cash. Each individual will have to pay taxes on the taxable income from the partnership reported on the individual’s tax return; even though no income is distributed to the partner from the partnership. PROS * In a general partnership, where two or more parties are co-owners, having multiple owners can make it easier to borrow additional funds because the combined credit rating is higher and the perceived risk (on the part of the lender) is lower. * Partners share duties, tasks, and responsibilities...
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...Creating, Financing, and Marketing a Business Kimberly M. Albuquerque Business 100 Strayer University 26 February 2013 Creating, Financing, and Marketing a Business When creating a business, entrepreneurs start with goals that help them create, finance and market their business. To stand up their business, they must decide what form of ownership they will use. This decision will affect the establishment and operation of their business, including financing and regulation, as well as marketing. One form of ownership commonly used in the United States is a partnership. This is where two or more people enter an agreement and become co-owners of a firm. There are limited partnerships, limited liability partnerships (LLP), and the most basic type, which is a general partnership. There are four key advantages of forming a general partnership. (1) The ability to pool financial resources likely gives a partnership a stronger financial foundation than a proprietorship because more people invest in the company. (2) The ability to share responsibility and capitalize on complementary skills. With partners sharing responsibility and tasks of running the company, the workload is lightened and they can benefit and feed off of each other’s skills and interests. (3) Ease of formation. Partnerships are relatively easy to stand up compared to corporations. The only thing required to get started is an agreement among two or more people. (4) Possible tax advantages. Partnership...
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...Assignment 2 - Creating, Financing, and Marketing a Business Carol Brandon Professor Mark McMullen Bus 100 - Introduction to Business Strayer University May 25, 2012 Creating, Financing, and Marketing a Business Carol Brandon Entering into a written agreement is one way to form a partnership; a partnership may be formed through the actions of the partners as they operate the business together. Even if individuals have an agreement that says "we are not a partnership," the law may find that there is a partnership and hold one or more partners liable for some business-related obligation. The simplicity and flexibility in creating a partnership may be one of the main advantages of the partnership as a form of business. However, the disadvantages of simplicity and flexibility must be carefully considered. Although an agreement is not required, without a written agreement, partners cannot determine their rights, duties, obligations, and liabilities, except for what is covered by state law. This is not normally enough, since the law on partnerships is not detailed. This allows partners a great deal of flexibility to structure the business as they would like it. But it leaves many questions unanswered if there is not an adequate written agreement setting out the details. The other main attraction to the partnership as a form of business is partnership tax treatment. From a tax standpoint, the partnership is as straightforward as the sole proprietorship. There is no tax...
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...Creating, Financing, and Marketing a Business BUS 100 Creating, Financing, and Marketing a Business A Business Partnership is usually hatched in a state of inspired optimism when two or more seemingly like-minded individuals come together with an idea to create a product or service and develop it into a business. As with anything, a business partnership has it’s pros and cons but there are also two types of partnerships, General and Limited. A General Partnership is subject to partnership agreement; all partners have equal rights in the management of the partnership. The Pros of General is that the partnership may designate particular partners with particular skills to make decisions in that area and reserve the more important decisions to the partnership as a whole. Cons to consider is that each partner has rights in management and may contractually bind the partnership. Each partner is responsible for the contracts that the other partners execute and the liabilities that they incur. The possibility of disagreement and deadlock exists. The other partnership is Limited. In a Limited Partnership at least one general partner is responsible for the management of the partnership. A limited partner may not participate in the management of the business or the limited partner runs the risk of becoming personally liable for the debts and obligations of the limited partnership. Pros to this partnership include that a general partner may vote on matters related to the...
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...Creating, Financing, and Marketing a Business A Business Partnership is usually hatched in a state of inspired optimism when two or more seemingly like-minded individuals come together with an idea to create a product or service and develop it into a business. As with anything, a business partnership has it’s pros and cons but there are also two types of partnerships, General and Limited. A General Partnership is subject to partnership agreement; all partners have equal rights in the management of the partnership. The Pros of General is that the partnership may designate particular partners with particular skills to make decisions in that area and reserve the more important decisions to the partnership as a whole. Cons to consider is that each partner has rights in management and may contractually bind the partnership. Each partner is responsible for the contracts that the other partners execute and the liabilities that they incur. The possibility of disagreement and deadlock exists. The other partnership is Limited. In a Limited Partnership at least one general partner is responsible for the management of the partnership. A limited partner may not participate in the management of the business or the limited partner runs the risk of becoming personally liable for the debts and obligations of the limited partnership. Pros to this partnership include that a general partner may vote on matters related to the business of the partnership provided such matters are...
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...Creating, Financing, and Marketing a Business 1. Identify the pros and cons of the partnership as a form of ownership. Forming a partnership can be rewarding as well as taxing in many different ways. With a partnership, as compared to a corporation, you can start up fairly easy. Most everything from, what your product will be, to pricing, advertising, marketing and more will be decided by you and your partners. Forming a partnership vice going it alone allows you to have access to more capital, experience, and skills. Alone you may struggle to get your business up and running quickly and with the proper equipment, materials and skillset. Be it managerial or the hands on development, most times two or more personnel are better than one. However, as with anything, there are some drawbacks to having a partner or partners. With partners you do not have complete say in all aspects of the business. The decisions concerning the company must be talked about and agreed upon by all concerned. Another factor to consider is that withdrawing from the partnership may not be as easy as saying “I quit”. There can be other ramifications such as debt owed, any outstanding obligations, or pending lawsuits. There’s also, in my opinion, the biggest problem. Unlimited Liability! With unlimited liability you may be liable for actions taken by one or more of your partners. Even though you may not have actually committed any wrong doing yourself. This also means that it’s not just the...
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...Assignment 2: Creating, Financing, and Marketing a Business Elbert Womack Professor Laverty BUS 100061VA016-1128-001 December 2, 2012 In today’s business environment, there has been a number new businesses being created at a rapid pace. With rising unemployment in our nation, people are beginning to consider being their own boss and are starting businesses of their own. However, starting your own business is no easy endeavor. It takes a considerable amount of planning, funding, and a strategy to transfer your goods or services. Most of all, you want to be sure that you set yourself up for success. The first thing that will come to mind is whether or not you can do it by yourself. You have a very marketable business concept that you know will do well, but you may wonder if you can develop the concept to its full extent. By starting business, it will create a lot of new responsibilities that you may not have considered yet. This may lead you to seek a partnership to increase your chances of success. A partnership will allow you to broaden your horizon in many ways. A partner could bring new financial options to your existing plan. They may have access to other financial resources that would have otherwise been unavailable to you. They can share some of the new responsibilities with you which will allow you to focus on other areas of the business. Also, there is not any legal documentation needed to enter a partnership. However, it would be a good idea to...
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...Creating, Financing, and Marketing a Business Ibadan Mack Prof. Felicia Walters BUS 100 May 30, 2013 In any business, there will come a time when changing the form of ownership has to be considered. There are several different types of ownership options, but the one that seems to be most advantageous to most is a partnership. According to Wilkipedia.com (2011), the definition of a partnership is an arrangement where parties agree to cooperate to advance their mutual interests. Partnerships exist within, and across, sectors. Non Profit, religious as well as political organizations may partner together to increase the likelihood of each achieving their mission and to amplify their reach. (p.1) Although partnerships may sound intriguing and advantageous, as with any ownership form, there are pros and cons which must be weighed and evaluated. According to allbusiness.com (n.d.), general partnerships have many benefits, but perhaps the most compelling is the ease with which they can be set up and maintained. You do not have to register with your state and pay fees, as you do to establish a corporation or limited liability company (LLC). Because a general partnership is normally a "pass through" tax entity -- meaning the partners, and not the partnership, are taxed -- filing income tax returns is relatively easy. Unlike a regular corporation, there is no need to file separate tax returns for the corporate entity and its owners. Partnerships are also considered a discrete...
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...The Business Environment BUS 100 – Introduction to Business Professor Denel Pierre In order to understand business and the economy one need to know the meaning of business and its purpose within society. Business can be viewed as a legal entity to sell goods, make goods or provide a service to individuals. It’s an economic system where a for-profit and a non-profit company can exist in providing goods and services. Businesses operate within a network of distributors and producers of goods, consumers’ who purchase goods, within a demographic area based on their needs and wants. Within this network how a business is structured and form can affect the profitability of that business; also, how businesses perform can affect the overall performance of a country’s economy. Describe the role of business in the economy Being part of a capitalistic economy businesses are the main and most important component of it. Businesses play a role in every section of an economy, such as; manufacturing, healthcare, retail and service are examples of what involves businesses. Without a network of producers and distributors there will be no economy, if businesses do not exist then consumers will have to produce, create, store, and sell items themselves, basically everyone would be fending for themselves for every need and want. (Kelly, M., & McGowen, J. (2012) In today’s global businesses environment the economic impact can be felt internationally. As businesses go through cycles of...
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...The Business Environment I. Describe the role of business in the economy. Businesses play an important role in the development and growth of our economy. By creating jobs, which helps the economy grow as well as improving the quality of life within the community? When a business thrives, they are able to hire more employees - which mean there are more people within the community with jobs that are able to spend on a range of goods more we spend the more the economy grows. “Studies show that consumer spending, accounts for 70 percent of U.S economic activity”. II. Compare and contrast the roles of for-profit and nonprofit organizations in the economy. Both businesses and nonprofits rely on production. The combination of these factors is imperative for an economic system to function and create wealth. Most business’s work with nonprofit organizations to increase their impact within the community. Businesses supply goods and services, to communities in an effort to make a profit. While a nonprofit organizations main, focus is not to earn revenue but to enhance the public welfare. Additionally, businesses are taxed, while nonprofit organizations are often eligible for tax-exemptions. III. Discuss the impact of current fiscal and monetary policy on the economy. “Fiscal and Monetary policies are tools that the Federal Reserve Bank, and the government uses to help keep the economy running smoothly. The United Stated has had recessions, but our economy has always...
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...Identify the pros and cons of the partnership as a form of ownership. A partnership is a free will agreement made between two or more people for a business that makes a profit, and all parties involved play the role of co-owners. The most common partnership is known as a general partnership. In a general partnership all parties have the right to participate in the administration process of the company and shares of the profit, and each partner is equally responsible for any liabilities that the company endures. There are so many advantages of having a partnership like the satisfaction of having someone to share in the burdens of running a business. This will allow flexibility for them to be able to better manage their time, and allow them to dictate the needs of the business as they see fit. It is also a great asset to utilize the skills and interests of all partners to share in the responsibility of the organization, to give everyone lighter workloads, and promote the general health of the company. Another advantage of having a partnership is being able to file income taxes easier than a corporation. All of the partners earnings in the partnership go untouched by the IRS this are known as “pass through”. This tax entity means that everything is taxed under a partner personal income, and they do not have to file taxes with their business. The possible hazard for double taxation would be avoided. A partnership will have a better leverage over sole proprietorship because you have...
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... There are quite a few pros and cons with having a business partner. They are as follows: Having two people responsible for the big picture, and making sure no important balls get dropped makes for an easier run of things. Having two perspectives on challenges and another brain to bounce ideas off will help avoid a number of disasters that rash decisions can create. Self-care and work-life balance are the elusive goals of every entrepreneur. It's easy to keep pushing yourself to the brink in the interests of furthering your business; what's less easy is to watch someone else being pushed to that same edge. And, as we know, the trickiest piece of the puzzle is the "self" part. Another pro of having a business partner is someone always has your back. It's really easy, as entrepreneurs, to believe that your way is the best way. In fact, many people go into business, because we were pretty convinced of this, and, if your business is successful, you have ample support of that view. But no one is right all of the time, and having a business partner to whom you have to justify your reasoning is a great way to make sure you're making decisions soundly and not just because you like the sound of your own ideas. Often business partners grow apart and you may not always find yourself heading in the same direction as your business partner, even if you start off in exactly the same place. With more than one person at the top in a business partnership you have to divide the dividends when they...
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