Premium Essay

Types of Business (3)

In:

Submitted By riolsen1
Words 2086
Pages 9
Types Of Business

There are many different advantages and disadvantages of different types of ownership within the business sector. Before you start you’re new or expanded business plans. You need to explore all the options available to you. Will you be a Sole Proprietor or a Corporation or everything in between? The following report will examine six different business organizations in detail.

Sole Proprietorship: is when the business is fully owned and managed by one person (others can be employed to help run the business) as the sole proprietorship only monetary income is from the business, you don't receive a paycheck. If you need money for living expenses, you take a draw. A Sole Proprietor, personal and business taxes are not separated. Therefore, your tax return will include business profit/ loss, as well as other personal income on your 1040. Also it's hard to raise capital to expand your business. These types of businesses are located in the small business sector and usually covering local areas. A few examples of sole proprietorship are barber shops, mechanic shops, hobby shops, plumbers, etc. Sole Proprietorship have unlimited liability, which means if the business fails, the owner is 100% responsible financially for all debts, it has occurred while open. Also his personal assets and possessions will be used to settle his responsibilities from his business. “A sole proprietorship avoids the expense of forming a partnership or corporation, and is the easiest and cheapest way to start a business” (My Own Business, 2007).
Characteristics of Sole Proprietors;
1. There is only one owner and they are in complete control of the business, easy to set up and the business can be up and running almost immediately. You don't have a Board of Directors or Shareholders that you need approval to run your business.
2. Most successful sole proprietors have

Similar Documents

Premium Essay

The 3 Types of Business Ownership

...An example of a Sole Proprietorship business in my town would be The Evans Barber and Salon. Their business is filed a single entity for tax liability purposes. As a company they are not registered with the state as a limited liability corporation or company. Being the owner they do not have to pay income tax separately for they only report income or loses or individual tax returns. Landscapers, housekeepers, and mom/pop stores are also examples of Sole Proprietorship. They also do not have to register with the state. Their income can be reported on their individual tax return, because they work alone. A partnership business example in my town would be the First Steps Daycare of Cuthbert Ga. The only daycare in town. A partnership is the type of business where multiple individuals, called general partners manage the business and are equally liable for its debts. Examples of other partnership are doctor offices, dental offices, and eye doctors. The partners in these offices that manage the business, they are equally liable for the debts incurred with that business. A Limited liability partnership is used by professional associations. The liability on the partner is limited to the amount he or she may have invested in the company. This action keeps each partner from being held accountable for their wrong doings of another partner in their partnership. Examples of limited liability partnerships are Baker Tilly Virchow Krause, Deloitte, and Ernst & Young. The examples listed...

Words: 434 - Pages: 2

Premium Essay

Role of Accounting on Business Behavior Impacted by Tax Changes in Malaysia

...Title: Role of accounting on business behaviors impacted by tax changes in Malaysia Justification There are many factors influence the changes of accounting importance where the role of accounting evolves along with the business changes affected by these factors. One of the factors that affect role of accounting in business field is tax. In Malaysia, Tax is generally divided into 2 types which are direct and indirect tax. Direct tax can be defined as tax which is imposed straight to the taxpayer. In short, the payment of tax is between taxpayer towards government. Examples of direct tax are income tax from employee salary, corporation tax, property tax, and etc. Meanwhile, indirect tax is a type of charge that can be transferred to the other person. A good example of indirect tax is restaurant that collect tax charge of the food’s sold from the customer (sales tax). Other examples of indirect tax are custom duty, central excise duty, and service tax). In brief, the history of Malaysia tax was started with more dependency towards indirect tax where establishment of direct tax has only started to take effect from 1 January 1948. This establishment has changed the trend of Malaysia tax which depends more and more on direct tax until today. In 2009 itself, government revenue has grown to 48.6% from direct tax. The urgency of understanding changes in accounting role due to tax, become important because of several reasons. Firstly, as the globalization of the economy develops...

Words: 1847 - Pages: 8

Premium Essay

Jkhghjjhgjhjhjggh

...Solution Architecture IRDA Business Analytics Project Nov 2010 Solution Architecture Document - IRDA Business Analytics Project Table of Contents List of Abbreviations Used with Their Definition .......................................................................................... 5 List of Terms Used with Their Definition ...................................................................................................... 9 1. 1.1 1.2 2. 3. 4. 5. 5.1 5.2 6. 7. 7.1 7.2 7.3 7.4 7.5 8. 9. 9.1 9.2 10. 10.1 Executive Summary ......................................................................................................................... 14 Introduction ................................................................................................................................ 14 Solution Architecture .................................................................................................................. 14 Objectives of the Business Analytics Solution ................................................................................ 17 Key Business Drivers ....................................................................................................................... 17 Solution Themes ............................................................................................................................. 18 Present IT Infrastructure at IRDA ..............................................................................................

Words: 50163 - Pages: 201

Premium Essay

Unit 6

...Cambridge TECHNICALS OCR LEVEL 3 CAMBRIDGE TECHNICAL CERTIFICATE/DIPLOMA IN BUSINESS BUSINESS COMMUNICATION H/502/5413 LEVEL 3 UNIT 6 GUIDED LEARNING HOURS: 60 UNIT CREDIT VALUE: 10 BUSINESS COMMUNICATION H/502/5413 LEVEL 3 UNIT 6 AIM OF THE UNIT Effective communication is a key area in terms of its contribution to business success. When studying this unit learners will gain a thorough understanding of the types of business information used both internally and externally by organisations and the methods used to communicate information to different audiences. In this unit, learners will have the opportunity to develop, analyse and evaluate a range of methods used to communicate different types of business information and will understand the purpose of such communication. They will also produce and evaluate different types of business communication of their own. www.ocr.org.uk 2 Business Communication Level 3 Unit 6 ASSESSMENT AND GRADING CRITERIA Learning Outcome (LO) Pass Merit 1 Understand different types of business information P1 explain different types of business information, their sources and purposes 2 Be able to present business information effectively P2 present complex internal business information using three different methods appropriate to the user’s needs The assessment criteria are To achieve a merit the the pass requirements for evidence must show that, this...

Words: 1948 - Pages: 8

Premium Essay

Business

...merger J. small business K. business plan L. alien corporation M. domestic corporation N. franchising O. corporate charter 1. The form of business ownership that is subject to the least legal red tape is the _____. ANS: A DIF: 1 REF: p. 180 OBJ: TYPE: KN 2. If Chrysler and Ford were to merge, it would be an example of a(n) _____. ANS: F DIF: 1 REF: p. 187 OBJ: TYPE: AP 3. The form of business ownership that establishes the firm as a separate legal entity is the _____. ANS: C DIF: 1 REF: p. 182 OBJ: TYPE: KN 4. If Anheuser-Busch were to acquire a bottling/canning firm, it would be an example of a(n) _____. ANS: I DIF: 1 REF: p. 187 OBJ: TYPE: AP 5. _____ are people on the board of directors of a corporation, but are not employed by the corporation. ANS: H DIF: 1 REF: p. 185 OBJ: TYPE: AP 6. A(n) _____ refers to two or more firms that combine to form one company. ANS: D DIF: 1 REF: p. 187 OBJ: TYPE: KN 7. A(n) _____ occurs when one firm purchases the property and assumes the obligations of another. ANS: E DIF: 1 REF: p. 187 OBJ: TYPE: KN 8. A merger of firms in unrelated industries is called _____. ANS: G DIF: 1 REF: p. 187 OBJ: TYPE: KN 9. When a corporation merges with another to assure adequate raw materials it is called a(n) _____. ANS: I DIF: 1 REF: p. 187 OBJ: TYPE: KN 10. A(n) _____ is an association of two or more persons who operate a business as co-owners. ...

Words: 8740 - Pages: 35

Premium Essay

Business Law

...Faculty of Business and Environmental Studies T1/13 Coursework Assignment Diploma in Engineering Business Management Module: 102KM Business Organization Assignment Title: Types of Business Organizations Date & Time of Submission : Week 10 (22:00) Assignment Weighting : 50% Word Limit : 3000 words Description of Assignment This is an individual assignment and carries 50% of the module weightage. A business can have a number of different types of ownership depending on the aims and objectives of the owners. This assignment requires further study on the different types of ownership, which makes up the different types of business organizations, which will be tested in tasks 1-3. Brief TASK 1 You are required to explain the different types of business organizations as listed below: - Sole proprietorship (10 marks) - Partnerships (20 marks) – Please discuss the different types of partnerships - Corporation (10 marks) TASK 2 For each type of Business organization identified in Task 1, discuss 2 advantages and 2 disadvantages that reflect the role of the Business Organization in the economy. 2.5marks will be awarded for each advantage and disadvantage (30 marks) TASK 3 For each of the types of business organizations listed in Task 1, explain in detail and support with a brief study of a Company that is based on that particular organization structure...

Words: 376 - Pages: 2

Premium Essay

Business Law

...Business Entities Lisa Ramos BUS311: Business Law I Instructor:  July 28, 2014 Business Entities I. Introduction “Business owners are wise to consider the fundamental issue of organizational formbefore they become too deeply immersed in business operations.” (Rogers, 2012) When it comes the laws of business there are is a large range of categories and topics which include the type of entity to become and how it affects contracts, liabilities and tax information. We must be aware that there is more than just one type of entity and determining what type of business to become can have some legal implications and therefore must be reviewed thoroughly. II. Types of Entities A. Sole Proprietorships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities B. Partnerships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities C. Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities D. S Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities E. Limited Liability Company (LLC) 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities III. How are contracts enforceable? A. Five...

Words: 410 - Pages: 2

Premium Essay

A Case Study in Database Design

...------------------------------------------------------------- 1 B. Sample Forms --------------------------------------------------------------- 2 II. Database Planning A. Mission Statement ----------------------------------------------------------- 3 B. Mission Objectives ----------------------------------------------------------- 3 C. Project Team and Responsibility Assignment ------------------------------ 4 III. Database Boundary A. System Boundary ------------------------------------------------------------ 5 B. Database User --------------------------------------------------------------- 6 C. Data Dictionary -------------------------------------------------------------- 7 IV. Requirements Collection and Analysis A. Database Normalization ---------------------------------------------------- 14 V. System Specification A. System Specification ------------------------------------------------------- 15 VI. Physical Database Design A. Physical Database Design -------------------------------------------------- 16 VII. Conclusion A. Conclusion ------------------------------------------------------------------ 18 I. Overview A. Company Profile The Petilla Dormitory is a privately owned business located near in Morayta Sampaloc, Manila. It is a family business that run for years that providing...

Words: 2260 - Pages: 10

Premium Essay

Rockford Fosgate Punch P1 2 X 10'' S4 Custom Ported Subwoofer Enclosure

...P1 Explain different types of business information, their sources and purposes 1 P2 Present complex internal business information using three different methods appropriate to the user’s needs 2 P3 Produce corporate communications 2 P4 Evaluate the external corporate communications of an existing product or service 2 P5 Explain the legal and ethical issues in relation to the use of business information 3 P6 Explain the operational issues in relation to the use of business information 3 P7 Outline electronic and non-electronic methods for communicating business information, using examples for different types of audience 4 M1 Analyse different types of business information and their sources 1 M2 Analyse the legal, ethical and operational issues in relation to the use of business information, using appropriate examples. 3 D1 Evaluate the appropriateness of business information used to make strategic decisions 1 D2 Evaluate the effectiveness of business information and its communication as key contributors to the success of an organisation, using examples to illustrate your points. 2 General comments on assignment: Grade Awarded Distinction Merit Pass Points: 70 80 90 Signed (teacher) Date Students Name: _______________________________ Teachers...

Words: 870 - Pages: 4

Premium Essay

Marketing

... 1 Bachelor of Business Administration Paper Code: Paper Title: BBA – 201 Cost and Management Accounting Max. Marks: 15 Last date of submission: Note : Question No. 1 is of short answer type and is compulsory for all the students. It carries 5 Marks. (Word limits 50-100) Q. 1. Answer all the questions: 1. 2. 3. 4. 5. What do u understand by Economic order quantity (EOQ)? What do u mean by variance analysis? Give four differences between management accounting and financial accounting. What is trend percentage? How cash flow statement is different from Fund flow statement. NOTE: Answer any two questions. Each question carry 5 marks (word limit 500): Q. 2. What is the meaning of Cost Accounting? Explain the difference between cost accounting and financial accounting. Q. 3. Write short note on (any two): a) Comparative Balance sheet statement. b) Ratio analysis. c) Fund flow statement. Q4. Prepare a cost sheet from the following particulars: PARTICULARS Stock of finished goods 1.1.2009 Stock of raw material on 1.1.2009 Purchase of raw material Productive wages Sale of finished goods Stock of finished goods on 31.12.2009 Stock of raw material on 31.12.2009 Factory overheads Office and administrative overheads Selling overheads 72,800 33,280 7,59,200 5,16,880 15,39,200 78,000 35,360 1,29,220 70,161 20,000 RUPEES JAIPUR NATIONAL UNIVERSITY, JAIPUR School of Distance Education & Learning Internal Assignment No. 2 Bachelor of Business Administration ...

Words: 2406 - Pages: 10

Premium Essay

Cost and Marrketing Management

... 1 Bachelor of Business Administration Paper Code: Paper Title: BBA – 201 Cost and Management Accounting Max. Marks: 15 Last date of submission: Note : Question No. 1 is of short answer type and is compulsory for all the students. It carries 5 Marks. (Word limits 50-100) Q. 1. Answer all the questions: 1. 2. 3. 4. 5. What do u understand by Economic order quantity (EOQ)? What do u mean by variance analysis? Give four differences between management accounting and financial accounting. What is trend percentage? How cash flow statement is different from Fund flow statement. NOTE: Answer any two questions. Each question carry 5 marks (word limit 500): Q. 2. What is the meaning of Cost Accounting? Explain the difference between cost accounting and financial accounting. Q. 3. Write short note on (any two): a) Comparative Balance sheet statement. b) Ratio analysis. c) Fund flow statement. Q4. Prepare a cost sheet from the following particulars: PARTICULARS Stock of finished goods 1.1.2009 Stock of raw material on 1.1.2009 Purchase of raw material Productive wages Sale of finished goods Stock of finished goods on 31.12.2009 Stock of raw material on 31.12.2009 Factory overheads Office and administrative overheads Selling overheads 72,800 33,280 7,59,200 5,16,880 15,39,200 78,000 35,360 1,29,220 70,161 20,000 RUPEES JAIPUR NATIONAL UNIVERSITY, JAIPUR School of Distance Education & Learning Internal Assignment No. 2 Bachelor of Business Administration ...

Words: 2406 - Pages: 10

Free Essay

Business and Enterprise

...tHE NATURE AND STRUCTURE OF A BUSINESS BUSINESS AND ENTERPRISE tHE NATURE AND STRUCTURE OF A BUSINESS BUSINESS AND ENTERPRISE Page Number | Contents | 1 | Contents | 2 | Executive summary | 3 | Introduction | 3 | Ownership Structure | 4 | Summary | 4 | Conclusion | 5 | Resources | 6 | Resources | 7 | Resources | | | Executive Summary: The task ahead is to plan, investigate and create Mark and Jodie’s business. There will be thorough investigation to solve the best ownership structure and why. The types of ownership structures that have been over looked include partnership and sole trader. These types of ownership structures could both be very useful for their type of business. Their plan is too start off small and then grow their business with their children. This has to be taken into consideration when deciding on what type of businesses structure is chosen. The information has to be collected from a wide range of Primary and Secondary resources. Introduction: A married couple who have two children are interested in creating a new business, providing a winery bus tour for their local area. Mark and Jodie have a plan to start off small and one day grow into a larger business. Mark would like to start off with a 13 seater van but then over the long term would like to be larger and offer coach tours to wineries all over Australia. Jodie, the wife, would be working in the business as well as hopefully their children one day. The ownership...

Words: 1580 - Pages: 7

Premium Essay

Btec

...Unit 4: Unit code: QCF Level 3: Credit value: Business Communication H/502/5413 BTEC National 10 Guided learning hours: 60 Aim and purpose The aim of this unit is to show learners that the collection and management of business information, and the successful communication of that information throughout a business, is critical for the future prosperity of the organisation. Unit introduction A business needs accurate and relevant information from internal and external sources in order to operate profitably. Proper collection of data creates an environment where informed decisions can be taken for the benefit of the business. In order to manage information effectively, there must be good communication systems within the organisation. Staff must possess good verbal and written skills in order to communicate and share information Business information can be used to obtain competitive advantage and promote efficiency. Organisations generate information internally, recording details of products manufactured, purchased and sold, and their associated costs. Businesses use information to manage not only what is currently happening in the organisation but also to plan for the future and ensure their survival. Information is collected, stored, manipulated, analysed and reported to those who need to use it. People need to become skilled manipulators and users of information to ensure organisations become more efficient and succeed in achieving their stated purposes. Since the...

Words: 3972 - Pages: 16

Premium Essay

Business Enviroment

...The Business Environment Unit 1/Assignment 1 Callum Whitehead Introduction In this assignment I am going to be describing the type, purpose and also ownership of two contrasting businesses. I will then look at stakeholders and look how they influence the businesses, look at how they are organised and explain how their style of the organisation helps to fulfil their purposes. Task 1 (Part A) My 2 contrasting organisations: 1. NHS 2. Microsoft Location – Explain different locations and give examples. Below are some types of locations within a business and how different they could become 1. Local: Local area/ Spilsby/ Spilsby theatre/ hair dressers/ local plumber. 2. Regional: Lincolnshire – based in this region, for example, swimming pools 3. National: UK, e.g. Morrison’s 4. International: only some businesses, for example, Tesco 5. Global: Most businesses, for example, McDonalds and Microsoft However, relating this to both of my contrasting organisations, NHS is more of a National Organisation as they are only working for people within the country as it is a government run Organisation. However, if I was to relate this to Microsoft then it would be different because Microsoft is a Global Organisation, they will produce their products to be sold to everyone. An example of this would be selling phones to people around the world and making money for the Organisation. This could lead to a rolling circuit. For example, if Microsoft was to...

Words: 2787 - Pages: 12

Premium Essay

Small Busness in Tanzania

...What constitutes a small business varies widely around the world. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. What constitutes "small" in terms of government support and tax policy varies by country and by industry, ranging from fewer than 15 employees under the Australian “Fair Work Act 2009”, 50 employees according to the definition used by the European Union, and fewer than 500 employees to qualify for many U.S. Small Business Administration programs, although in 2006 there were over 18,000 "small businesses" with over 500 employees that accounted for half of all the employees employed by all "small business". Small businesses can also be classified according to other methods such as sales, assets, or net profits. Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as a bakery or delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing, and online business, such as web design and programming, etc. Characteristics of small businesses Size definitions The European Union generally defines a small business as one that has fewer than 50 employees. However, in Australia, a small business is defined by the “Fair Work Act 2009” as one with fewer than 15 employees. By comparison, a medium sized business or mid-sized business has under 500 employees...

Words: 2935 - Pages: 12