...Sole Proprietorship: There is no legal difference between the Sole Proprietorship and the owner. They are easy to create and can mature as quickly or slowly as the owner wants. There can only be one owner and raising capital can be difficult, so they seek funding from financial institutions. ● Liability The Sole Proprietor is personally responsible for all debts and obligations. Creditors can claim personal assets of business owners and can sue if there is a breach of contract. Income Taxes All income rendered is treated as personal income for the business owner. Ordinary personal income has the highest tax rate, but there are different income takes rates depending on the type of income being taxed. Being able to plane to take advantage of a lower tax rate is difficult for many sole proprietors. Longevity / Continuity The Sole Proprietor is the sole owner, with no partners in the business, if the Sole Proprietor becomes disabled, retires or dies the business is dissolved. It does not the perpetual existence of a corporation. Control The Sole Proprietor makes all the decisions and has total ownership over finances. Profit Retention 100% profit retention allows them to use the profit at their discretion. they can reinvest in their current business, start a new business or use it for personal reasons. Location Expanding or moving is not very complicated. Using a DBA name allows a Sole Proprietor to legally do business under a name other than their full name. To move...
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...FOR TASK 1 PART A *Course Mentor Note on the interpretation/application of the Taskstream Instructions: According to the instructions in Taskstream, you may conclude the task is asking you to include 3 components for 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...
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...SAMPLE FORMAT FOR TASK 1 PART A *Course Mentor Note on the interpretation/application of the Taskstream Instructions: According to the instructions in Taskstream, you may conclude the task is asking you to include 3 components for 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 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...
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...Part A Sole Proprietorship A sole proprietorship is essentially a small business that is headed by one party or owner, referred to as an entrepreneur. As a sole proprietorship, the debt liability rests entirely on the owner. This means that they can be sued by creditors to collect business debts. Also, if the business owner has any unpaid personal debts, creditors may attempt to collect them from the business profits. Issues such as injuries, lawsuits, and torts that may arise will find the owner completely responsible. Because a sole proprietorship is not a corporation, the business owner is taxed differently. They must report all losses and profits to the Internal Revenue Service and keep current and accurate financial records for their business. They are also allowed certain deductions and exemptions on their taxes such as marketing costs, travel expenses, and startup fees and must pay self-employment taxes. Because the business is indistinguishable from the actual owner, the longevity is limited to the owner’s health. In other words, unless it is sold and legally transferred to another owner, the business will dissolve upon the death of the original owner. The sole proprietor has complete control, which involves the power to make all of the important decisions regarding their business. This can be advantageous because the owner has liberty to do as they please creatively and strategically, but it can also be an enormous amount of pressure for one person. Failure...
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...LIT1 - Task 2 Mark J. Fortenberry May 9, 2015 LIT1 - Task 2 Company X has reported three situations that have occurred that require investigating. Since employment and hiring practices are a part of my duties here at Company X, I have been charged with the investigation into these situations. In the subsequent report, the laws that companies must abide by will be outlined and how these laws affects the outcome in each of these three situations. The Family and Medical Leave Act of 1993 is one that ties in heavily to the first situation. “The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year” (Solis, N.D.). This leave must be for the birth and care of a newborn, placement of an adoption, to care for an immediate family member, or for an employee that has a serious health condition. For qualification, an employee must have at least 12 months of continuous employment with 1,250 hours worked within that 12 months. This issue involves said Company X and an employee that will be identified as Employee A. Under the FMLA, both company and employee must meet the requirements under the law. As an example, Company X must have at least 50 employees, while in reality, the company has over 75 employees. Employee A needs to have worked for Company X for at least 12 months and at least 1250 hours within that 12 months; the employment length for Employee A has been 24 months and met the hourly...
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...Legal Issues for Business Organizations – LIT1 Task 1 Legal Issues for Business Organizations – LIT1 Task 1 – Part A The way a business is organized is an important part of the business’s structure. “Different organizations provide different advantages and disadvantages in creation cost and simplicity, ongoing maintenance requirements, dissolution and continuity, fundraising, managerial control, public ownership, tax planning, and limited liability.” The nature of the business being conducted has little to do with the way the business is organized. (Johnson, 2013) Sole Proprietorship: The basic concept of sole proprietorship is that there is no distinction between the individual business owner and the business. To start this type of business, in most cases, one only needs to begin charging money for goods or services. Because of its simplicity, sole proprietorship is the most common business structure in the United States. According to the U.S. Small Business Administration, “over 70 percent of businesses are owned and operated by sole proprietors.” (Beesley, 2013) Following are some of the characteristics that lend both advantages and disadvantages to this type of business organization. * Liability. As sole owner of a business, there is no severability of liability between the business and the individual. Therefore, all gains and losses of the business are also the gains and losses of the individual. The aspect of unlimited liability is one of the biggest...
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...LIT1 Task 310.1.2-01-06 Part A: 1. Sole Proprietorship: a. Liability: The owner of sole proprietorship is responsible for all bills that involve the business from supplies to employees. Owner personal’s assets are attainable by creditors in case the sole proprietorship is unable to cover for the bills. b. Income Taxes: The owner would be considers as ordinary person income in which they are tax heavily. Sole proprietorship is unable to take advantage of the lower income tax rate. c. Longevity/Continuity: It is impossible for sole proprietorship to continue because once sole proprietorship is no longer alive the business will no longer exist. d. Control: The sole proprietorship is control of the business. For example the sole proprietorship set his/her schedule (opening and closing) of business. e. Profit Retention: Sole proprietorship retains on the profit from the business. He/She is able to do whatever with the profits. f. Location: The sole proprietorship chooses where the business will be run at. g. Convenience/Burden: The convenience of being a sole proprietorship is being able to control business. The burden of being a sole proprietorship is being responsible for all aspect of the business from liability to income taxes. 2. General partnership: h. Liability: General partnership is still responsible for all debts and obligations. Evan if one of the partner has misuse the...
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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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...LIT1 Task 1, Part A Sole proprietorship: A sole proprietorship is an inexpensive and easy to form business organization. This entrepreneurship gives the owner the ability to have flexibility in their schedule. The business owner of this organization will benefit from having full control and retains all the businesses profits. Negatively, the business owner is also personally responsible for all the debt. and liability the business may take on. In this organization if the owner dies, the business dies also. • Liability: In a sole proprietorship the owner is personally responsible for all of the liability, including all debts. and obligations. The Sole proprietors personal assets are unprotected if the company “goes under” and there are unpaid debts. • Income taxes: In a sole proprietorship federal income taxes are filed as an individual would and Income taxes are submitted on the business owners’ personal income tax return. In this organization the percentage of taxes paid are typically higher. • Longevity or continuity of the organization: A limitation for growth in a sole proprietorship is that it does not allow financial investors thus, leaving the business owner to rely on his/her personal finances. In this organization if the owner dies, the business dies also. • Control: The business owner has all the control associated with the business. The business owner can set up the company as he/she chooses. • Profit retention: The business owner in a sole...
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...LIT1 Task 1 Part A SOLE PROPRIETORSHIP: A business that is owned by one person and is not incorporated. Sole proprietorships are easy to start. You don’t need a lawyer and you don’t need to register with the government except to obtain a business license or permit where required. * Liability: The owner is liable for all debts incurred by the business. His personal property can be attached. He is also responsible for any damage an employee may cause while working for him. * Income Taxes: The owner pays ordinary income tax on all profits. This can be an advantage because most of the time personal tax rates are lower than corporate rates. But, a sole proprietor will have to pay self-employment tax at a rate of 13.3% for the first $106,800 of income and 2.9% after that. The owner needs to register for an EIN (Employer Identification Number) if he will have employees. Payroll taxes need to be paid on employees. * Longevity/ Continuity: The business exists as long as it is financially solvent, the owner is alive, and the owner continues running the business. If the owner brings in another investor it becomes a partnership. * Control: The owner is solely responsible for all decisions concerning the management of the business. If they want to expand the business or end the business it's totally up to them. * Profit Retention: The owner keeps all profits and he also takes all losses. * Location: Different...
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...abstractions for problem solving. The analysis shows that the learned abstractions produce an exponential reduction in the size of the search space. Since few problem solvers actually explore the entire search space, the paper also presents an empirical analysis of the speedup provided by abstraction when a heuristic search is employed. The empirical analysis shows that the bene t of abstraction is largely determined by the portion of the base-level search space explored. Thus, using breadth- rst search, which searches the entire space, abstraction provides an exponential reduction in search. However, using a depth- rst search, the search reduction is smaller and depends on the amount of backtracking required to solve the problem. Abstract 1 Introduction The Tower of Hanoi puzzle has be studied extensively in the problem-solving literature Ernst, 1969, Eavarone, 1969, Korf, 1980, Ernst and Goldstein, 1982, Knoblock, 1990b, Benjamin et al., 1990, Christensen, 1990]. Previous work has primarily focused on various approaches for generating abstractions, but has largely ignored the issues in using the abstractions for problem solving. This papers reviews an approach that generates abstractions for the Tower of Hanoi, shows that the abstractions provide an exponential reduction in the size of the search space, and then analyzes the use of the abstractions in the prodigy problem solver Minton et al., 1989, Carbonell et al., 1991]. The author is supported by an Air Force Laboratory...
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...LIT1 Task 1 part A Sole Proprietorship- This is the most common way to do a startup business in the US. There is no distinction between the owner and the business. This is owned by one person * Liability- The owner of the business is solely responsible for all liability (unlimited liability) * Income Taxes- The owner of the business pays taxes on the income generated as ordinary income. For tax purposes, all income needs to be reported on their personal tax forms. * Continuity-When the owner dies, the business dies with them * Control-The owner maintains control of the entire business throughout the life of the business * Profit retention- The owner keeps all the profit from the business * Expansion- The owner can expand or contract the business at will within compliance of the state laws * Compliance- In order to start a business the owner doesn’t need to do much. Taking freelance work or simply telling someone you are a business is legally all you need to start. Sole proprietorship does not have all the rules and regulations of some other business organizations. General Partnership- This is formed when two or more people agree to form a business and share in the profits, losses and responsibilities as partners equally. Easy to set up and can be financed in more than one way. * Liability- Each partner is jointly liable for the entire debt and losses of the business and the other partner. * Income Taxes-Income for the business...
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...LIT1 Task 2 Part B As director of the human resources at Company X I have evaluated the three given situations regarding the Family and Medical Leave Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act. As head of the oversight hiring and employment practices at the company it is my responsibility to insure Company X is in compliance with the federal regulations against discrimination in hiring, employment, and federal law regarding the treatment of employees. These are my observations: Situation A: Employee A’s wife gave birth to twins prematurely and has requested leave; he was granted the leave and has taken 11 weeks off. He now would like to return to work, and has asked to be paid his suspended salary from the 11-week leave. During employee A’s leave the previous department manager left the company, the new manager has agreed to Employee A’s return to the same job, and same pay rate as before, but has denied request for 11 weeks of withheld salary. Situation A falls under the Family and Medical Leave Act (FMLA) of 1993. This Act facilitates 3 basic rights: the right of up to 12 weeks of unpaid leave, the right to return to work, and right to benefits while away on leave, however; there are limitations to this act. Both public and private employers are subject to FMLA requirements if they have more than 50 employees, eligibility to FMLA leave requires that employee have 1 year of employment with the company, at least 1...
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...LIT1 Task 1 Part A (the report) SOLE PROPRIETORSHIP: A sole proprietorship is the simplest, quickest and cheapest form of business to start making it the most popular types for first time business owners. A business owner and a sole proprietor may operate under different names, but legally, they are the same entity. Which leads to one of the biggest disadvantages of becoming a sole proprietor; the owner is responsible for all debts and fault created by the business. One of the major advantages to starting a sole proprietorship is the simplicity behind the formation. There is very little paperwork that needs to be filed at the inception and it takes very little work to keep the business compliant with state and federal laws. Another advantage to a sole proprietorship is taxes. Any money made by a sole proprietor is considered income to the owner. The profit is claimed as income on the owner’s annual tax filings. * Liability: Because there is no legal separation between an owner and the business in a sole proprietorship, the business owner is unlimitedly liable for any debt or fault of the business. Even if the sole proprietorship dissolves, the owner will be liable for the debt. If the debt is not taken care of in a timely manner it will could affect the owner’s credit rating and lead to future earnings being garnished. * Income Taxes: Taxation of a sole proprietorship happens once, at the income level of the owner. Any profit made by the company is considered an...
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...Steve Wood LIT1 - Legal Issues for Business Organizations Task 1 Scenario A The purpose of the Family and Medical Leave Act of 1993 is to offer a balance between the stresses of both work and life. There are three main provisions of the act that are critical to the overall takeaway of what this law means to this situation. First, “Eligible employees can take unpaid, job-protected leave (they can return to their position). When they return from leave, FMLA guidelines require that companies return employees to their former position, assuming they are able to perform the essential functions of that position. If the employee is no longer able to perform his or her previous job, an alternative position with the same benefits, salary, and work hours must be provided to the disabled employee.” (FMLA Online) Second, Their insurance coverage stays as if they had not taken leave, COBRA does not take effect. And, “the leave can be tailored to fit the needs of the individual.” (FMLA Online) The law allows for the employee to take unpaid time to be able to care for his family without the need to stress that there will not be a job waiting with the same pay. The other part about this that is awesome is the fact that the employee’s insurance coverage stays intact without the need to involve COBRA. This law can also be tailored to the needs of the individual. If they need to have a continuous full 12 weeks, they can; if they need the leave to be split in different blocks of time, they can; lastly...
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