...Legal Form of Business Paper Many different forms of business exist. Some of them are more common than others. Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form are the seven forms of business that we are going to discuss in this paper. We are going to develop scenarios in which each of these forms of business would be the preferred form and justify why the corresponding business form would be most preferable. A sole proprietorship is the simplest form of business (Cheeseman, p.530). It involves a single person wishing to start a business. . A partnership involves two or more people to carry-on a business as co-owners for profit (Cheeseman, p.533). An example of this could be that two people decided they would like to open a car washing business together. The best business model for the two of them would be to decide on a partnership. This business form would give them equal rights and equal responsibilities within the business. As long as each of them understands that they are partners and need to share the expenses and responsibilities that come with the business then a partnership would be the best model for their business. A limited liability company (LLC) is a form of business where owners have li A limited liability partnership (LLP) is a form of business that provides each of its owners with a limited personal responsibility (nolo.com, 2011)...
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...Legal Forms of Business Consider each of the following forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. Develop scenarios in which each of these forms of business would be the preferred form. For each scenario, justify why the corresponding business form is preferred. In today business world entrepreneurs are presented with many forms of business organization to choose from to conduct their business. Every form of business brings advantage as well as disadvantage and the selection of the legal form of the business organization available should base on according to Cheeseman (2010), “factors, including the ease and cost of the formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, tax consideration, and the like.” (Cheeseman, 2010). Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate are the most known entrepreneurial forms of conducting nosiness. Below are you will find scenarios in which each of these forms of business would be the preferred form and justification why the corresponding business form is preferred. Sole Proprietorship Sole proprietorship represents the simplest form of the legal business organization where the owner, called in this form of business organization the sole proprietor, is...
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...Legal Forms of Business Amber Jackson MSAO1828E8 June 10, 2013 Norma Sutton Legal Forms of Business Sole proprietorship - A sole proprietorship is the first step for many businesses. It is not a business entity per se because there is no legal setup involved. Usually these types of businesses have one owner, although in some cases, spouses may own jointly a business. In a sole proprietorship, the owner is responsible for liabilities. There is no distinction between the personal assets of the owner and the business. A sole proprietor does not have to file any special forms at tax time because income is reportable on the individual's personal tax return. (Chron.com, 2013) Scenario: Bobby Mack’s opened a small restaurant to serve popular barbecue food. He is well known for his famous barbecue. Mack named is restaurant “Mack’s BBQ.” Operating this type of business does not mean that it have to do alone. After getting all the items to start his business Bobby hired a few employees to help run the business smoother. Despite the fact his business is not technically a business entity, he can hire however many employees he need. Justification: Bobby Mack chose this form of business because of the simplicity to get it started. It is an unincorporated business owned only by him. The business created itself when he started cooking for events and charities. The advantage of a sole proprietorship is...
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...Law 531/ Business Law Legal Forms of Business As an entrepreneur one of the most important decision to make, when starting a business is the legal form of the business. In making this decision many factors are taken into consideration, such as financial resource for business, government rules and regulation, and personal liability. In this paper a discussion regarding the different forms of business including scenarios of these form and explanation on why this corresponding business form is preferred. Sole Proprietorship According to Cheeseman (2010), a sole proprieship is the simplest form of business organization and there is no separate legal entity. (p. 530). Under sole proprietorship the business is owned and executed by a single person. The proprietor makes all the management decisions and has authority to receive profits. Sole proprietorship business could easily be sold or transferred if the owner choose, no other approval is necessary. Scenario: A small neighborhood businesses, sometimes called, neighborhood store, are an example of sole proprietorship. Creating a sole proprietorship is easy and low cost with no government approval is required at the federal and state level. A license to do business within the city is required at the state level. This form of business is excellent for a person with limited amount of money to start a small business, Sole proprietorship is responsible for business’s contract and torts committed, The sole proprietorship has...
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...Legal Form of Business Paper Many different forms of business exist. Some of them are more common than others. Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form are the seven forms of business that we are going to discuss in this paper. We are going to develop scenarios in which each of these forms of business would be the preferred form and justify why the corresponding business form would be most preferable. A sole proprietorship is the simplest form of business (Cheeseman, p.530). It involves a single person wishing to start a business. . A partnership involves two or more people to carry-on a business as co-owners for profit (Cheeseman, p.533). An example of this could be that two people decided they would like to open a car washing business together. The best business model for the two of them would be to decide on a partnership. This business form would give them equal rights and equal responsibilities within the business. As long as each of them understands that they are partners and need to share the expenses and responsibilities that come with the business then a partnership would be the best model for their business. A limited liability company (LLC) is a form of business where owners have li A limited liability partnership (LLP) is a form of business that provides each of its owners with a limited personal responsibility (nolo.com, 2011). This...
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...Legal Forms of Business When considering the preferred legal form of business, it comes down to the level of liability, the size of the business and the number of owners or shareholders that will be involved. It is important to consider that with the increased size of a business and the increase in the number of owners, the decision-making process becomes more complex. The level of liability for the owners decreases as the owners no longer are liable for the losses and gains of the business within larger legal forms of business. Of the legal forms of business; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate; some businesses may only qualify to be classified as one or two of the legal forms of business, making the decision easier for the owners to choose. Sole proprietorship: A sole proprietorship is a for-profit business owned by one person who may operate the business alone or employ others. The sole proprietor of the business is responsible for assets, losses, and debts. There is also no legal distinction between the sole proprietor and the business (Cheeseman, 2012). A small business, such as a coffee shop would be a prime candidate for a sole proprietorship. The owner could run the coffee shop alone or employ others to operate the business. A sole proprietorship can be more difficult to raise long-term capital for, because of unlimited liability and that the business depends...
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...Legal Forms of Business Paper University of Phoenix LAW/531 Aaron Gershonowitz November 7, 2011 Legal Forms of Business There are many different forms of business in today’s society. They run from sole proprietorship to corporate form. When someone wants to start a business, he/she has to decide what form of business he/she wants to be a part of. Of all the forms of business out there, this paper will be discussing seven of them, along with scenarios that each of these seven forms would be preferred. The forms of business being discussed in this paper will be: sole proprietorship, general partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporate form. Sole Proprietorship A sole proprietorship is a business that is owned by one person. Someone new to the business world would want to start out having this type of business if he/she wants to keep the business small. There are several major advantages to operating a business as a sole proprietorship, and they include the following: • Forming a sole proprietorship is easy and does not cost a lot. • No federal or state government approval is required. • The owner has the right to make all management decisions concerning the business, including those involving hiring and firing employees. • The sole proprietor owns all of the business and has the right to receive all of the business’s profits. • A sole proprietorship can...
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...Forms of Business When beginning a business venture, the first and most important decision made by the owner is to review the forms of business options and determine which one would be suitable for the organization of their company. There are seven forms of business that will be discussed and different scenarios that will be developed in which each of these forms of business would be the preferred form. The seven forms of business are sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporate form. The selection depends on many factors – Each of these forms of business has advantages and disadvantages for the entrepreneurs (Cheeseman, 34). Each scenario will also include why the corresponding business form is most preferred. Sole proprietorship Sole proprietorship is the simplest and most common form of business (Cheeseman, 530). This form of business would be appropriate for a single business owner. The business owner would be the sole proprietor in this situation. The sole proprietor would be the only decision maker on how to conduct their business, as well as would be held liable for all activities within their business and cold be at a loss for all assets if the business is not successful. For example, Kelly opens a hair store as the sole proprietor of the business. She handles all contracts made for her and to any employees that she may hire and receives all profits made from the business. Should...
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...[pic] BTEC Level 5 HND in Business Module Handbook Unit 5: Aspects of Contract and Negligence for Business Unit code: Y/601/0563 QCF level: 4 Credit value: 15 credits Module Tutor: Anila Mushtaq Contact Details: anila.mushtaq@yahoo.co.uk Preferred style of contact: In the first instance, if you have any queries regarding the teaching or assessment for this module, please ask question during the lecture. If you do not receive a satisfactory response then e-mail me with your query for an appointment. Introduction: The aim of this unit is to provide learners with an understanding of aspects of the law of contract and tort and the skill to apply them, particularly in business situations. Unit abstract: The unit introduces the law of contract, with a particular emphasis on the formation and operation of business contracts. Learners are encouraged to explore the content of these agreements and then develop skills relating to the practical application of business contracts, including offer, acceptance, intention, consideration and capacity. Relevant case law examples will be covered. Learners will consider when liability in contract arises, the nature of the obligations on both sides of the contract, and the availability of remedies when a contract is not fulfilled in accordance with its terms. Additionally, the unit will enable learners to understand how the law of tort differs from the law of...
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...Business Structures March 1, 2014 Law 531 Charles Houle Business Structures There are several different types of business structures available to a person who is interested in starting a business. The following scenarios will illustrate a preferred form of structure as well as what documents are required for the formation. The business structures to be examined are sole proprietorship, partnership, limited liability, S Corporation, franchise and the corporate form. Sole Proprietorship A person wants to start their own business where they do not answer to anybody but themselves regarding the company. The sole proprietorship maintains a business structure where that one person retains complete control and decision making ability over the business. There are very few formal business requirements imposed on this structure, corporate tax payments do not exist, there are minimal legal costs to form the structure and the sale or transfer can take place at the discretion of the owner. This structure is preferred for those who are likely not investing heavily in capital infrastructure requiring external investors. In order to create a sole proprietorship a business name, location and business checking account must be established. A business license must be obtained from the locality. No legal documents, meetings, minutes, or complications surrounding shares of the business. Partnership (General & Limited) Two types of partnerships, general and limited, provide advantages...
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...Business Law 531 Legal Forms of Business Lyneeta A. Johnson University of Phoenix October 1, 2012 Christine Benway Legal Forms of Business Starting a business is an exciting event for a business owner; it signifies the beginning of a business venture expected to be successful. Choosing an industry, identifying the target market, and developing a business strategy can be time consuming, however; the rewards outweigh the work. Deciding what legal form of business to operate can be a difficult decision for entrepreneurs because of the requirements that must be met for each legal form of business. Following is a discussion about the different forms of business. A scenario simulation for each form of business including justification for the preferred business form is also present. Sole Proprietorship According to Cheeseman (2010, p. 529) “an entrepreneur is a person who forms and operates a business.” An entrepreneur starting a business independently is a form of sole proprietorship. The owner of the business is the sole proprietor. A recent college graduate who opens a mobile dog grooming service is an excellent example of a sole proprietorship. The graduate who has experience with animals from walking dogs in the neighborhood to gain extra income would be ideal...
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...strategy it is important to see distant things as if they were close and to take a distanced view of close things” (Musashi 2009). * This article focuses on trend diagnosis for strategic foresight in its entirety. The author scrutinizes that although trend is an imperative concept in the strategic issue management, the interpretation of trend in strategic foresight is ambiguous. This paper conceptualizes, from a strategic point of view, trend as an innovation (socio-cultural) and elaborate the implications with respect to strategic issue diagnosis. (Liebl 2010) * * * * * The figure above (Liebl 2010) depicts an elaborate framework for conceptualizing trends. The strategic trend diagnosis has to deal with two different aspects of innovation: invention and diffusion. The invention aspect of a trend is identifying “The New” results from a transgression of contextual boundaries whereas the diffusion is a process of normalization (Normality and Abnormality) – i.e., a new socio-cultural practice becomes a social convention and the phenomena of post-normalization may lead to a process of market creation. * * * * Another main point that the article highlights is the strategy formulation based on entrepreneurial framework. The figure above (Liebl 2010) shows the link to the strategic formulation. According to entrepreneurial framework, the formulation of strategy should start from the “worlds of the...
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...BUSINESS 111 FALL 2011 NON-BBA FINAL EXAM REVIEW GUIDE Final Exam Date: FRIDAY, DECEMBER 9TH, 2011 Exam Time for WLU Students: 7:00 p.m. – 9:30 p.m. Exam Time for UW Students: 7:30 p.m. – 10:00 p.m. Writing Locations posted at https://www.wlu.ca/~mibrahim/exams/FALL2011/BUSINESS.html Important Notice: If a student cannot write a business or economics final exam as scheduled, they must submit a "Petition for Exception to Academic Regulations" form to Ms Lee Leeman, Student and Petitions Coordinator, SBE1256. Supporting documentation will be required and verified. This permits equitable treatment for all students taking SBE courses. If appropriate circumstances are presented with appeals, students will be accommodated on either the SBE slip day or the next exam session. Exam Format: 20 Multiple Choice questions = 1 mark each 6 Short Answer questions, 2 to 6 marks each, choice in 1 question = 25 marks 7 Quantitative problems, 3 to 6.5 marks each, choice in 1 question = 35 marks 80 marks total TOPICS TO BE COVERED: (Items listed in red indicate quantitative problems) Economic Factors - four pillars of Canadian financial system – description, roles - Bank of Canada - description, tools for affecting money supply - bonds – characteristics (return, term, priority over stockholders), types, features, factors affecting price, calculating approximate yield to maturity, relationship between prevailing interest rates and bond prices, reading bond...
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...sending and receiving messages. How a message is created and received determines how others view it. Framing is the essence of targeting a communication to a specific audience (Raffoni, 2009, p. 3). Messages are informative and persuasive. A message is a form of communication between the receiver and sender that articulates the sender’s thoughts and opinions. Messages explain information and are generally used to inform, persuade or seek action from the receiver. Once a message is received the receiver should be able to fully comprehend the message and determine the intent of the message. Persuasion messages are sent with the intent to alter the receiver’s thoughts, and opinions. Action Messages encourage the receiver to perform specifically. This essay will further describe three messages and the response to one message as it relates to communication feedback. Business Related Message #1 Gwen, the new Director of Nursing of a Home Health agency, sent an e-mail one week ago in preparation for individual case conferences. The message read: “I would like to schedule a meeting for the week of October 4, 2010 from 9:30 a.m.-10:30 a.m. to discuss my coming on board and any concerns you may have”. Thank you in Advance. In this scenario, Gwen serves as the sender in this communication process, and I as the recipient. Gwen, the sender...
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...company's capital structure. Capital structure can be described as how a business finances its assets. There are two main types of capital: Equity and debt. Capital structure is usually a mix of debt, preferred stock, and common stock that the company can use for expansion and to remain financially healthy. The key is to choose the right mix in order to maximize shareholder return. A1. Capital Structure Capital structure is generally defined as how a company finances its assets. It is measured as a percentage of debt and equity (common and preferred stock). Potential investors tend to look positively on a company that has more equity and less debt. The best capital structure approach for CBI to take is to implement the 50% Preferred and 50% Common Stock scenario. This alternative provides the best overall way to improve CBI's financial position with strong capital structure while maximizing shareholder return. A1a. A review of Canadian Bikes data over five years indicates consistently increased earnings before interest and taxes (EBIT), increased net profit, and increased shareholder returns (EPS). Offering the 50% preferred and 50% common stock results in the highest EPS for years one, two, and five and equal to the next alternative (20% with 9%bond) in years three and four. Net income is higher despite increased income taxes for all five years as is the EBIT. Because this option offers 50% preferred stock at 5%, $50 par, the total income available for Common stock and common...
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