...Business Models When stating up a business, there are many different business models that can be chosen. Some of the most popular models are: Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Company, S Corporation, C Corporation and Franchise. When deciding which business model is most appropriate, there are two major elements to consider: taxation and liability. Each of the above business models has advantages and disadvantages in these two areas. This paper will discuss the pros and cons of each business model and provide a scenario that illustrates when a particular model would best be utilized. Sole Proprietorship In simple terms, sole proprietorship refers to a business that is run by a single person. The sole proprietor enjoys all the profits as well as bears all the risks of the business (everymanbusiness, 2011). Pros Being one of the simplest of all business models, a sole proprietorship can be set up with very little effort. There is no special paperwork or extra fees involved in creating a sole proprietorship. In some states it is required to register the business, however, in other states it is not. The owner has the right to make all management decisions concerning the business, including hiring and firing employees (Cheesmen, 2011). Maintaining a sole proprietorship is much simpler than any other business model. Taxes are simplified with sole proprietorship as the business, and individual are considered...
Words: 1981 - Pages: 8
... * Entitlement vs. performance philosophies Intrinsic vs. extrinsic rewards- Intrinsic rewards may include praise for completing a project or meeting performance objectives. Other psychological and social forms of compensation also reflect intrinsic type of rewards. Extrinsic rewards are tangible and take both monetary and nonmonetary forms. * Role of the HR unit in compensation * Internal equity * External equity * Meet/lag/lead strategies * FLSA * Exempt / nonexempt * 5 categories of exempt employees * Overtime * Training & travel time * Independent contractors * How to classify * Tax implications for employers / employees * Market pricing and pros/cons * Pay grades * Red/green circle employees * Pay adjustments (e.g. seniority) Chapter 12 – Incentives * Variable pay philosophy * How variable pay motivates employees * 3 categories of variable pay * Types of individual incentives * Gainsharing and how different from profit sharing * 3 types of commission pay plans and which is the most common * Examples of performance incentives * Why incentives should be tied to organizational goals * Pros/cons of bonuses vs. merit pay Chapter 13 – Benefits * why employers offer benefits * flexible benefits * adverse selection * employee choice in benefits selection * personal statement of benefits * legally required benefits and discretionary...
Words: 2463 - Pages: 10
...Forms of Business There are multiple business formation options available to those looking to start a business. The type of formation depends various factors “including the ease and cost of formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, and tax consideration” (Chessman, 201) to name a few. The major forms of business organizations are general partnership, limited partnership, sole proprietorship, limited liability partnerships, limited liability company, and corporation. Having an understanding of the type of business to form depends on what the goal of the company is. Sole Proprietorship A sole proprietorship is the simplest form of business organization. The owner of the business is the business and there is no separate legal entity. Management decisions concerning the business are made by the owner without having to consort with anyone else. All the profits from the business belong to the owner. One would set up a sole proprietorship if they running a small business, such as a restaurant named after themself. The business would belong to them and is identified by their name as is the form of business. The preference for this setup would be to have complete control of the menu, restaurant décor, staff, and operation of the establishment according to only the owner of the establishment. Partnership A partnership “is a voluntary association of two or more persons for carrying on...
Words: 1265 - Pages: 6
...Amber Wells Ac 1010637 Assignment 7 English Comp II 7/7/2013 Online Shopping Vs. Traditional Shopping Humans have several different beloved past times such as sports, vacations and entertainment. One of the oldest and most enduring is shopping which encompasses shopping for necessity and shopping for pleasure. Advancements in technology have allowed humanity to purchase items online through the Internet. The purpose of this essay is to compare and contract shopping online to traditional shopping. At the end of the essay you can decide which method is best for you. Traditional and online shopping allow the consumer to view the items; however, not all online websites allow the consumers to get a panoramic view. Visual appeal is one of the important aspects of attracting potential buyers but if they can’t see the item from all sides this may hinder the purchase. Traditional and online shopping provides the consumer with information about the products. In the traditional arena the customer can talk with the sales clerk and get information about the products right in the store. Online the customer has at least three ways to collect information about the product: (1) product description, (2) product reviews and (3) toll free numbers to the customer service line associated with the websites. Traditional shopping and online shopping allow personal interaction; however, the levels are varied. Traditional shopping allows the consumer to build a relationship with...
Words: 1404 - Pages: 6
...ground between projects (for PM and Team) • Framework of best practices • APM • Project management in context • Planning/Executing strategies • Techniques • Business/Organisation/People • PMI • Project life cycle • PM Process • Project Integration/Scope/Time/Cost/Quality/HR/Comm./Risk Management 2 What is the so-called iron triangle? Explain how it may be used in order to evaluate strategic choices in a project. (4 points) • [Draw picture] • Time/Quality/Cost/(Customer satisfaction) • Trade off, optimization for one or two goals (priority) • Conformance vs. Performance 3 Describe the kind of stage-gate models that many companies use to control their projects. Discuss briefly the pros and cons of such a system. (4 points) • Basic opportunity to review progress (Checkpoints/Gates) • Find fundamental problems in the project early • Quality gates: Deliverables, Checklists • Pros • Ability to call a halt (Save future expenses) • Quality control • Correction of earlier plans • Cons • Requires additional effort • Can slow down the project 4 What is a work breakdown structure? Describe the process of deconstructing a project into a WBS and discuss the major problems linked to this. (4 points) The breaking down of large activities into or manageable units is a fundamental part of project management. • Splitting of activities to comprehensible/manageable...
Words: 2149 - Pages: 9
...Pros and Cons of Unions Today GB 541: Employment Law Unit 6: Research Paper Assignment (Final) June 12, 2014 Prof. K. Rauch Unions in America Currently, there is are over 60 unions representing over 14 million workers throughout the country. A labor union is defined as an organization intended to represent the collective interests of workers in negotiations with employers over wages, hours and working conditions. Labor unions are often industry-specific and tend to be more common in manufacturing, mining, construction, transportation and the public sector (Labor Unions, 2014). Congress enacted the National Labor Relations Act ("NLRA") in 1935 to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices, which can harm the general welfare of workers, businesses and the U.S. economy (National Labor Relations Act, 2014). Labor union s are mostly associated with Democratic Party and supports them during election. When unions are powerful, they boost the incomes of not only their members but also of nonunion workers in their sector or region. Labor unions strive to improve the lives of all working families by bringing economic justice to the workplace and social justice to our nation. Also, it is important because most corporations focus on creating profits at the expense of employees. History Unions are very prevalent in the United States presently and has a long history...
Words: 2123 - Pages: 9
...Describe the characteristics of the four basic forms of business ownership. A sole proprietorship is a business that is owned, and usually managed, by a single person. A partnership is a voluntary arrangement under which two or more people act as co-owners of a business for profit. A corporation is a legal entity created by filing a document with a state agency also known as the articles of incorporation. A corporation is considered to be a separate and distinct from its owners, who have a limited liability for the debts of their company. A limited liability company is a relatively new form of business ownership that, like a corporation, offers limited liability to its owners. However, LLCs offer more flexibility in tax treatment and simpler operating requirements. Discuss the advantages and disadvantages of a sole proprietorship A sole proprietorship is the simplest and least expensive form of ownership to establish. It offers the single owner the flexibility of running the business without having to seek the approval of other owners. If the business is successful, the sole proprietor retains all the profit. The earnings of a sole proprietorship are taxed only as income of the owner with no separate tax levied on the business itself. A key disadvantage of a sole proprietorship is that the single owner has unlimited liability for the debts of the business. The sole owner also must often work long hours and assume heavy responsibilities. Sole proprietorships as normally have...
Words: 759 - Pages: 4
...will help the auditor evaluate inherent risk and with that the amount of sufficient and appropriate evidence needed to be collected. Below are a couple more of the more relevant ones to the Comptronix’s Case. The first factor to consider is the industry of the client’s business operations. When conducting an audit the auditor should understand the company and how day to day operations are run. Also they should understand the direct risk associated with the industry the company deals in. With Comptronix they produce circuit boards, a great deal of electronics have a very fast lifespan and an auditor should watch how the company values and accounts for such boards in their inventory. The more risky the business looks based on the results collected, the hire the inherent risk should be set for that type of company in the industry. Another factor that can influence inherent risk is the client’s motivation and presence of related parties. The auditor should always look at transactions that go n between related parties to ensure that the transactions have been recorded correctly. In this case Comptronix had a member of the board of directors’ who was the VP of manufacturing at a major customer the company did business...
Words: 1909 - Pages: 8
...Case: Campbell and Bailyn’s Boston Office: Managing the Reorganization Executive summary: This case was about issues that Ken Winston, the regional office manager Campbell and Bailyn’s Boston Office faced with as a result of the two recent changes in organizational structure and performance management system to react to the dynamic of the industry and market. The issues created by these two changes were process complication, limitation in competitive advantages, and discouragement on internal collaboration. We recommend Winston to engage KAT and sales specialist team, define measureable goals to each individual, set up one common organizational goal and make it as part of the performance assessment and hold more company events to encourage collaboration and relationship. With this solution, Winston will be able to ease the process, build stronger sales team, maintain market share, gain sales, maintain profit and create good and healthy working environment within the organization. 1. Situation analysis Campbell and Bailyn (C & B), found in the early 1900s and based in New York, was one of the five largest investment bank in the worlds. The firm has good reputation and was doing well in all segments of the investment banking industry. Within the firm, the bond division, which had been the fastest growing unit, had eight regional sales offices around the world. After New York, the Boston office was the largest. Due to the size and the revenue volume, Boston...
Words: 2709 - Pages: 11
...Flat Tax Rate Eliminates Complicated System The first quarter of each year marks a period of turmoil and angst for many Americans as they race to complete the complicated forms of the current years’ federal income tax return. With more than 66,000 pages and 893 forms to choose from, the current Internal Revenue Service Code screams difficulty (Mitchell, 2005). Most politicians agree that changes are necessary; however there remains to be a major debate of ways to accomplish changes without stressing the economy. The department of treasury has compiled extensive research that has resulted in various options on various ways to reform our current system (Mitchell, 2005). A flat tax rate on income could be a solution to this issue and many have invested time in devising feasible plans. There are pros and cons to everything, but I believe the benefits would far outweigh the faults in light of our countries current economic situation. A flat tax, taxing everyone at the same rate, with basic deductions as well as no income tax burden for persons or families who make less than a specified amount during the year, would be fair. Most people feel the current system is unfair with its double taxation and varying tax brackets ranging anywhere from 10% to 33% of the adjusted gross income (“Congressional Budget Office”). The proposed 15% or 17% flat rate for all American would benefit everyone, considering in 2007 the overall average federal tax rate was 20.4 percent (“Congressional...
Words: 957 - Pages: 4
...Business Entity Matrix Paper Exploring one’s entrepreneurship and starting a new business can be quite exciting. The idea of being your own boss and making all the management decisions is extremely appealing to many. However, there are many considerations and plans to make before actually starting the business. Aside from the obvious of choosing what it is one wants to do, a person must consider how to acquire the funds to start the business, what liabilities the company and owners may be exposed to and whether additional help will be needed to run the business. Our current venture is to start a business of selling pet treadmills. One of our initial concerns is the startup capital needed. While we do have a healthy inheritance to utilize for startup capital requirements, we are also contemplating bringing in two friends on the venture. We must also consider the future of our business such as adding employees, franchise opportunities and international market growth. We know our first decision needs to be which type of entity to use to start the business. This decision will have a big impact on all these factors. Many people do not consider the business entity type until the business is already “up and running”. However, the entity type has a direct relation to the ability to raise capital and the amount of taxes paid by both the company and its owners. As such, careful consideration should be given to the potential needs of the business and its owners in making...
Words: 2166 - Pages: 9
...wife, Leonora Figueroa-Pascual, founded Pascuallab as a single proprietorship. They operated their business out of Tondo, Manila with products for treatment of tuberculosis and vitamin deficiency then. In 1952, the Pascuals modernized their plant in Tondo and expanded the operations to include anti-infectives and cardiovascular medicines. By the 1960s, Pascuallab entered into strategic partnerships with foreign-based companies and became a corporation. It was during this time that it formalized the marketing and sales activities and strengthened its Product Research and Development Division. In the 1970s, Pascuallab transferred its manufacturing plant from Tondo to a place then known as Km 31, MacArthur Highway in Balagtas, Bulacan in response to the government’s call to locate all factories outside the 30-kilometer radius from Manila. The head office moved to Epifanio de los Santos Avenue (EDSA), Quezon City. Pharex Corporation assumed the distribution of the company’s products. In the 1980s, the company made Metro Drug Crop. as product distributor and officially appointed Pharex health Corp as the marketing arm of Pascual Corp’s generic products. It also formed the Consumer Products Division to market personal hygiene and vitamin products. In the 1990s, it went into intensive marketing for consumer health products using media advertising and product endorsers, a major change initiative that started tremendous sales growth. In 1995, it ventured into native Philippine...
Words: 3406 - Pages: 14
...HEALTH CARE: SHOW ME THE MONEY By defining health-care fraud, observers should be aware that hard-earned money is wasted annually. Consequently, more precautions should be enforced to safeguard citizens’ tax dollars. Simply put, health-care fraud is the submission of false claims by individuals acting with disregard to the truth (Lovitky, 1997). Individuals, empowered to be health care providers, can be guilty of committing health care fraud, as well as major corporations (Sparrow, 1996). According to former Attorney General of the United States, Janet Reno, states health-care fraud ranks second of the top priorities of the Department of Justice, just behind narcotics interdiction (Lovitky, 1997). Health-care fraud typically involves violations by way of: overutilization; up coding; billing for services not provided; failing to provide necessary services; and filing false cost reports (Lovitky, 1997). Fundamentally, overutilization is defined as providing medical services not needed or required. In the process of overutilization, fraud takes place when more services are provided than what the situation calls for, or when medical services are never performed and still billed to the insurance company (Lovitky, 1997). Up coding, according to Lovitky (1997), involves Current Procedure Terminology (CPT). The CPT code accurately describes medical, surgical, and diagnostic services and it is designed to make medical services and procedures consistent among physicians, coders...
Words: 2023 - Pages: 9
...-The competitive environment of ECCO is quite high due to the other of producing shoes such as NIKE, Adidas and Puma etc are the big brand as well. However, the way they positioned themselves is interesting. ECCO positioned itself to be concerned in the quality rather than fashion 1) Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-à-vis competitors) to take advantage of changes in the industry. Use Porter’s five-forces model, the PEST model, and a SWOT analysis to explain your answer. ECCO produces mainly casual footwear with an intense focus on high-quality production.In order to deliver the highest quality product, ECCO maintained a fully vertically integrated value chain situated in various countries leveraging local expertise.Because of this unique situation, competitors found it very difficult to sustain a comparable level of quality. As noted in the case, ECCO finds itself in a highly competitive industry. The primary competitors identified in the case are: Timberland, Clarks, and Geox. For a brief analysis of the strengths of each of these competitors, please refer to Figure 3.As ECCO has recently entered the golf shoe market, they also face stiff competition from firms such as Nike, Rebok, and Adidas. ECCO stands in a unique position among the competitors in that it is the only non-branded manufacturer.The primary competitors of ECCO identified in the case outsource the majority of their manufacturing then uniquely brand...
Words: 6478 - Pages: 26
...Case Study: Considerations on group development Case Study: Considerations on group development In the current business world, several organizations have adopted the idea of creating a team to address an emergency situation, to improve something that is idling or to create a new thing from scratch, all in order to work in a more effective and efficient way. Every group faces challenges and victories, even if small ones. According to Robbins and Judge, “Teams are more flexible and responsive to changing events than traditional departments or other forms of permanent groupings. They can quickly assemble, deploy, refocus, and disband”. (Robbins 308) It is with this in mind that this paper will analyze the case study number 3, “ Building a Coalition”, and develop thoughts and considerations about the issues in the study, connecting them to the theory on building teams. Group Development The story begins with the creation of a new agency by the Woodson Foundation, a nonprofit social service agency, and the public school system in Washington D.C., with the participation of the National Coalition for Parental Involvement in Education (NCPIE), which is an organization of parents that is involved in the school through the Parent Teacher Association (PTA). They share a common interest in building this new agency in order to create an after school program to help students learn. The three separate groups opted to develop a cross-organizational development team, responsible for...
Words: 2209 - Pages: 9
