...Part A of Task 1 which are: 1. Six of seven characteristics 2. Advantages and disadvantages for each business organization 3. Brief description for each business organization But to clarify what is actually required, you only need to describe the 6 of 7 characteristics; you don’t need to list Disadvantages/Advantages nor a brief description. The reason: 1) the info for your advantages/disadvantages/brief description and bullet list essentially is the same so you'd see redundant work and 2) if you look at the rubric for Task 1, the only metric is that you have 6 of 7 characteristics for each business organization - there is no metric for brief description nor advantages/disadvantages. Thus, regarding the format for Task 1 Part A for LIT1, the Bullet/Listing approach (mentioned in the Task 1 Instructions) is below, which basically is you’ll describe each characteristic in usually about 1-2 sentences then move on. Example of how to apply this format: SOLE PROPRIETORSHIP: • LIABILITY – (1-2 Sentence Description) • INCOME TAXES – (1-2 Sentence Description) • LONGEVITY/CONTINUITY – (1-2 Sentence Description) • CONTROL – (1-2 Sentence Description) • PROFIT RETENTION – (1-2 Sentence Description) • LOCATION – (1-2 Sentence Description) • CONVENIENCE/BURDEN – (1-2 Sentence Description) As you will note, the subheading is the business form/organization and the bullets are the characteristics you need to describe. Once you’ve...
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...characteristics 2. Advantages and disadvantages for each business organization 3. Brief description for each business organization Thus, regarding the format for Task 1 Part A for LIT1, the Bullet/Listing approach (mentioned in the Task 1 Instructions) is below, which basically is you’ll describe each characteristic in usually about 1-2 sentences then move on. Example of how to apply this format: SOLE PROPRIETORSHIP: • LIABILITY – (1-2 Sentence Description) • INCOME TAXES – (1-2 Sentence Description) • LONGEVITY/CONTINUITY – (1-2 Sentence Description) • CONTROL – (1-2 Sentence Description) • PROFIT RETENTION – (1-2 Sentence Description) • LOCATION – (1-2 Sentence Description) • CONVENIENCE/BURDEN – (1-2 Sentence Description) As you will note, the subheading is the business form/organization and the bullets are the characteristics you need to describe. Once you’ve done this for Sole Proprietorship then you move on and do the same for the rest of the business organizations as well, which are: • GENERAL PARTNERSHIP • LIMITED PARTNERSHIP (NOT LIMITED LIABILITY PARTNERSHIP) • REGULAR C CORPORATION (NOT CLOSED/CLOSELY HELD CORPORTION) • S-CORPORATION • LIMITED LIABILITY COMPANY SAMPLE MEMO FORMAT FOR TASK 1 PART B *Content below is irrelevant to the task and used for example purposes only. M E M O R A N D U M TO: Clients and Friends of the Firm FROM: Paul Smith...
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...LIT1 – Task 1 (Part A) Sole Proprietorship: • Single Ownership - The single individual always owns sole proprietorship form of the business. The individual owns all assets and properties of the business and bears the risk of losing or gaining from the business. • No Sharing of Profit – The business is owned by an individual, therefore, all of the gains are directly available for the owner to access immediately. There is no friction between owners • One Man’s Control -‐ The controlling power in a sole proprietorship always will be the owner. However, the owner is free to consult to whomever he/she likes. • Unlimited Liability -‐ The liability of the sole proprietor is unlimited. This implies that, in case of loss the business assets along with the personal properties of the proprietor shall be used to pay the business liabilities • Direct Motivation – Since the profits earned goes directly to the owner there is a greater motive to perform. • Ease to form and dissolve – Since the business is not a corporation it is fairly easy to startup and dissolve. • Taxation – The owners conduct a pass through taxation...
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...Organizational Forms of Business Legal issues for Business Organizations LIT1 July 23, 2012 * * * * * * * * * * * * * There are different types of business organizational structures. These structures include sole proprietorship, general partnership, limited partnership, C-Corporations, and S-Corporations. These structures each have advantages and disadvantages, depending on the particular situation or desired effects the business owners may have. It is imperative that owners understand the differences so they can choose the best organizational structure that fits their business needs. * Sole Proprietorship * One of the most common, easiest, and cost-effective organizational structures is a sole proprietorship. This form consists of one owner, and does not have any distinction between the business and the owner. Although sole proprietorships may seem less complex, it has disadvantages as well. * Sole proprietorships have several advantages and disadvantages as listed: * Liability – Sole proprietorship does not differentiate between the business and the owner. Sole proprietorships are liable for all losses. If the company were to get sued, the owner’s personal assets would also be at risk. The owner must file as a business if they are using a fictitious name; even if a company files a doing business as, also known as DBA, there is no legal separation of assets * Income Taxes – The...
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...LEGAL ISSUES IN BUSINESS ORGANIZATIONS Legal Issues in Business Organizations Toya M. Smalls Student ID: 000295300 LIT1 Task 310.1.2-01-06 June 28, 2013 Legal Issues in Business Organizations A business can be organized in one of several ways and the form its owners choose will affect both the company’s and owners’ legal liability and income tax treatment. It is important that the business owner considers these different forms of business organizations: sole proprietorship, partnership, and corporations. Various legal structures are available to assist business owners with the organization of their business. These legal structures make provisions for the business’ liability, income taxes, continuity, control, profit retention, and regulatory requirements. Each organizational structure differs and possesses advantages and disadvantages. The first important decision that a business owner will make is selecting an organizational structure that will capitalize advantages and curtail disadvantages for their business. Legal Issues in Business Organizations Sole Proprietorship A sole proprietorship consists of one individual doing business and is the most common and simplest form of business to establish. · Liability: Sole proprietors have unlimited liability, which is a clear disadvantage. They are personally responsible for the obligations of the business, including the actions of employees representing the business. · Income Taxes: A sole...
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