...Owning and operating a business, for some, is a dream come true, and something that takes years of careful planning before it can be brought to fruition. However, deciding which type of business format to enter into is just as important as coming up with a solid business plan initially. Thorough consideration should be given to all business types; even discussing the many options with an expert is highly advisable. In the end one has to make the final decision to become a sole proprietorship, an LLP, LLC, an S corporation, so on and so forth… One of the simplest forms of running a business is doing it as a sole proprietor. A photographer, for example, doesn’t need much capital to start up this venture, and would have the benefit of being his or her own boss, as well as reaping all of the profits made from selling his pictures. Plus, this person would not have to pay taxes at a business level, and would only have to file a 1040 on the personal income tax form. One of the only downsides to this type of business is the photographer must be prepared to be solely liable for any damages or torts brought forth upon them. Additionally, a sole proprietorship has a limited life, because when the business owner dies, the business generally dies along with it (Garrison, 2012). Another very common form of doing business in the United States is by establishing it as a partnership. This can be as simple as two friends joining together to form a catering company, or as complex as several...
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...Betty Wilson, a mature Christian, is thinking of opening a Christian Coffee House in Belmont, NC. Her husband John is open to making a contribution of capital to the business, but he has no interest in participating in its operation or management. Her sister Alice, is a new Christian, and has informed Betty that she’s been looking for an excuse to get out of the house and that she would love to be a part of the business. Alice’s husband, a non-Christian, opposes her involvement and told her that he expects her to remain a stay-at-home mom to their daughters, Ally and Lisa, ages 13 and 15. Betty’s neighbor Erma, a non-Christian, has also expressed an interest in participating in the business as a way to earn some extra income. As a consultant, I will address the pluses and minuses of the following business forms so that Betty might adopt a business structure that is the best fit for her success. “A Sole Proprietorship, is a business owned by one person with no formal legal structure. The advantage is simple. Just start your business; there's no additional paperwork. You don't file corporate income tax; just file a Schedule "C" with your personal income taxes. The disadvantages are you have no personal liability protection. If your business is sued, you could lose everything you own, and in some cases, your spouse could lose his or her assets, too. A Partnership is a business with more than one owner who actively engages in the management of the company. The advantages are...
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...Sole proprietorship Sole proprietorship concern (also known as a sole trader/owner) is the most common and most favored option for individuals who want to establish a small business in Pakistan, or want to start a home-based business. This form of business is used by majority of start-ups on Pakistan, and it is the simplest way of giving corporate face to a small business Formation Following are the main steps to start a sole proprietorship business: · Finalize a business name. · Print basic business stationary i.e. letterheads, visiting cards etc. · Prepare firm's name stamp (a common rubber stamp will do). · Open a bank account in the name of sole proprietor business. The bank manager will require a request letter on business letterhead with sole proprietor’s signature and stamp. · Get bank statement of the newly opened bank account. · Apply for National Tax Number (NTN) certificate. Bank account statement and a copy of sole proprietor’s computerized national identity card will be required along with application for NTN. If sole proprietor already has NTN there is no need to get a new one as the existing NTN can be used for business documentation. Characteristics There is no requirement to register a sole proprietorship in Pakistan. Any business can be conducted through a sole proprietorship unless the law requires a certain business to be carried out only by an association of persons, for example a partnership firm or a limited liability company. Sole proprietorships...
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...a1 PART A SOLE PROPRIETORSHIP A sole proprietor operations are often called mom and pop businesses. They are usually run by a single person, the owner, or run by a very small staff. • Liability: The owner is liable for all debts accrued by the business. This means creditors are entitled to recoup and debts through business and personal assets. • Income taxes: A sole proprietor files their business taxes along with their personal taxes. Typically when filing taxes the form that is files is the 1040. The owner would just need to file a Schedule C form along with their 1040. • Longevity or continuity of the organization: In the event that the owner dies normally the business dies also. Unless the owner has a qualified heir to pass the business to it will cease to exist. 2 • Control: As stated above, typically sole proprietorships are completely autonomous. The owner has total control over day to day operations. He also has to final word on all decisions associated with the business. • Profit retention: The owner keeps 100% profits gained. • Expansion / Location: To expand or relocate business the owner only needs to make sure they obtain any licensing or permits required by local or state law. Also, if operating in a name other than their own, they must make sure the business name is legally available for use. GENERAL PARTNERSHIP A general partnership is where there are two or more that own a business with equal powers. To establish a partnership...
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...Three Main Business Structures Graling Carmichael FIN/571 Operations Management November 3, 2014 Danica Djordjevich Three Main Business Structures There are normally seven types of business used in the United States; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporation. For the purpose of this paper, I will concentrate on the three main business structures of sole proprietorship, partnerships and corporations and explain how each might or might not be advantageous. Sole Proprietorship A sole proprietorship is a business owned by one person. About three-fourths of the businesses in the US function with this business structure (Bates, Kidwell, & Parrino, 2012). This business structure usually consists of a owner and a small number of employees. One of the main advantages to this structure is it is the simplest type of business to start, and it is the least regulated by the government. Another benefit is that a sole proprietor keeps all the profits and has the authority to make all the decisions. And lastly, profits are subjected to lower income taxes compared to those businesses structured as corporations. Sole proprietorships have some disadvantages as well. The sole proprietor’s access to the capital is limited to personal funds plus any loans he or she can obtain. The sole proprietor is legally responsible for the business’s contracts. And, the sole proprietor is legally...
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...Unit 1: The business environment Help sheet 1.1.1 P1 Describe the type of business, purpose and ownership of two contrasting businesses To achieve P1, you must complete Task sheet 1.1.1, a case study, as well as Worksheets 1.1.1 to 1.1.4. You must also write a detailed presentation about two organisations. • You must ensure that the two organisations chosen are very different. For example, a large plc, such as Tesco, and a charity, such as Save the Children. This will make it easier to compare the environments. • It is a good idea to choose organisations that you are interested in, but that also have a large amount of information available. Therefore, spend some time researching a few organisations that might be of interest to see which one will make this task the easiest. • The same organisations will be used for tasks other than P1 so look ahead in the assignment to make sure the information you will need is available. • Once you have chosen your organisations, you need to research them in order to be able to identify the type of businesses they are. You must identify which scale they operate at and what sector they operate in. Make sure you give evidence and reasoning to back up your decisions. • The purpose and ownership of a business can often be seen on its website. However, you may find a phone interview very useful for collecting all the information you need. This can then be used as evidence. Remember to reference your work when necessary. ...
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...P1 I will be relating the type of business, purpose and ownership of the two contrasting organisations. The two organisations that I will be choosing are: Oxfam and Sainsbury’s. Sainsbury’s Purpose/aims of Sainsbury’s The purpose of Sainsbury’s is that they are trying to make as much profit as possible, as they are competing with other supermarkets and be the number one UK’s supermarket, and this will allow them to expand on their business. Sainsbury’s have a long term goal to deliver their products and keep their customers happy. One of their objectives is to make life easier for their customers by offering products with good quality and service with a fair price. This also makes the customers happy and makes them want to shop there more. This helps Sainsbury’s to increase their profit rate. The fact that they have a clear, long-term strategy shows that they are informing future developments, and that they are thinking deeply and clearly on how to adapt, develop and grow quickly before they get left behind in the competition with competing against other businesses. Business activity Sainsbury’s is a national company as it has stores throughout the UK, and this shows that they are making profit day in a day out. Improvement within the business Sainsbury’s are doing many things to improve their business of their five values, so that they are improving the business and still staying in the market. By staying committed to their values, they are making their customer’s...
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...1) Describe the type of business, purpose and ownership of two contrasting organizations Sainsbury’s Sainsbury’s is the UK’s most long standing major food retailer, having opened its first shop in 1869. Sainsbury’s brand is built around providing fresh and tasty food for its customers. It differentiates itself from other supermarkets by offering a broad range of products at a great price, a strong ethical approach to business and continuous leadership. The size of Sainsbury’s consists of 504 supermarkets and 309 convenience stores. A large Sainsbury’s produces over 30,000 products. Sainsbury’s is currently in the tertiary and secondary sector, this is because Sainsbury’s provides services (through banks), sell goods and own their own farm. Their purpose is to exceed customer’s expectations for fresh and healthy food, making their lives easier every day. Sainsbury’s ownership is the public limited sector because it sells its goods on the stock exchange. Sainsbury’s key stakeholders are: Customers: They want a company to produce products that meet or exceed their needs, they would like to see improvements Employees: They want the company to provide them a source of revenue; they seek security for employment, promotional opportunities and good rates of reward Suppliers: Want stable instructions and punctual payments. They want to be valued by the company they work for. RSPCA RSPCA stands for Royal Society of Prevention of Cruelty to Animals. The vision of RSPCA is...
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...Business purpose and ownership To: The Chief Executives of Nike and Trafford Council From: Tom. Jackson, Management Consultant Date: 21st October As a consultant management you (Nike/Trafford Council) have given me the task of issuing a report about your company and how they are set up. Within this report I shall be reviewing both business set ups. Nike is a Global business as the business is known all over the world with Nike clothing and accessories being sold world wide. In terms of the type of business that Nike operates in they are a Public business as anyone can invest into Nike on the New York stock exchange. Nike belong to the secondary industrial sector as Nike’s largest aspect of their business is manufacturing their goods such as shoe wear and general sports equipment. Trafford Council is a regional business as it only serves the people of the Trafford Metropolitan Borough of Greater Manchester. Trafford Council as a business is not for profit as it serves to fund trafford residents with local needed necessities such as: local schools, parks, street lights etc. Trafford Council belongs to the tertiary sector of business as Trafford Council is a service thus it is within the service sector which goes under the tertiary sector. As a globally recognised organisation Nike’s main business purpose is for profit maximisation, by helping to meet profit maximisation Nike have vast global advertising to help them sell as many Nike accessories as possible...
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...PART I – 5 Cases where moving and storage companies were sued for some type of fraud against the Consumer and/or against other Businesses These group of cases represent consumers in lawsuits against moving companies and/or arbitration. Lawsuits against moving companies may include damages to property, breach of contract, tariff or regulatory violations, and hostage loads. * The Attorney General's Office filed a lawsuit against Moving Max in July 2014, alleging they "engaged in a predatory bait and switch scheme," billed customers for "bogus charges," and then "threatened to drive off and retain the customers personal belongings unless and until payment was made by cash or money order." Under the terms of the Final Consent Judgment (entered February 13, 2015), that concluded a lawsuit filed in State Superior Court in Bergen County, the owner of Moving Max, Inc., a moving and storage company based in Fair Lawn, and the owner’s father, are permanently barred from owning or working in such businesses in New Jersey. In addition, as part of the settlement, 18 consumers who complained that their possessions were held until they paid substantially higher moving costs than agreed to, will be reimbursed for their losses. Case Cite: John J. Hoffman v. Moving Max, Inc., et al. Bergen County New Jersey Case No.: BER-C-203-14 http://nj.gov/oag/newsreleases15/Moving-Max-Oziel.pdf * Shurgard Storage Centers, Inc. (plaintiff) and Safeguard Self Storage, Inc. (defendant)...
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...5—Options for Organizing Small and Large Businesses COMPLETION Directions: Complete the following using the terms listed. A. sole proprietorship B. partnership C. corporation D. merger E. acquisitions F. horizontal merger G. conglomerate merger H. outside directors I. vertical 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...
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...Chapter 2 Global E-Business: How Businesses Use Information Systems 2.1 © 2010 by Prentice Hall Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems LEARNING OBJECTIVES • Define and describe business processes and their relationship to information systems. • Evaluate the role played by systems serving the various levels of management in a business and their relationship to each other. • Explain how enterprise applications, collaboration and communication systems, and intranets improve organizational performance. 2.2 © 2010 by Prentice Hall Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems LEARNING OBJECTIVES (Continued) • Explain the difference between e-business, ecommerce, and e-government. • Assess the role of the information systems function in a business. 2.3 © 2010 by Prentice Hall Management Information Systems Chapter 2 Global E-Business: How Businesses Use Information Systems The Tata Nano Makes History Using Digital Manufacturing • Problem: Outdated manufacturing processes, timeconsuming manual labor. • Solutions: Digital manufacturing systems allowed Tata to create a $2,500 car without sacrificing safety or value. • Dassault Systems’ Digital Enterprise Lean Manufacturing Interactive Application drastically reduced development cycle. • Demonstrates IT’s role in fostering innovation and improving efficiency. • Illustrates...
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...Scenario 1: Two Businesses on our Doorstep. Scenario You have just started work in the business section of the Gulf News. The Newspaper has asked you to put together a small guide for the readers to understand more about two businesses. They want you to focus on two contrasting companies; this can be your choice. The purpose of the article is to contrast two businesses in respect of their business purpose, ownership type, organizational structure and their strategic planning; the newspaper wants to help readers understand more about businesses. The second business must be a contrasting business from the first. Task 1: (P1) P1: Describe the type of business, purpose and ownership of two contrasting businesses. • One of the businesses has to be profit making • The second business should be not for profit and operate on a different size to the first. • You should set it out as a written guide for readers of the newspaper. You must consider the following; Range of different businesses: local; national; international; global; public; private; not-for-profit/voluntary; sectors of business activity (primary, secondary and tertiary) Business purposes: supply of products or services; difference between profit and not-for profit organizations. Ownership – public, private and voluntary sectors; types of ownership, e.g. sole trader, partnership, private and public limited companies, government departments, governments agencies, worker cooperatives, charitable...
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...The Business Environment (10 Credits) ASSIGNMENT 1 – Two Businesses on our Doorstep Learner Outcomes: 1. Know the range of different businesses and their ownership 2. Understand how businesses are organised to achieve their purposes Scenario: You work as a junior journalist for the local newspaper which is planning to run a feature article on local businesses Task: 1. Learners must describe (P1) the type of business, purpose and ownership of two contrasting businesses 2. Learners must describe (P2), explain (M1) the different stakeholders who influence the purpose of two contrasting businesses 3. Learners must describe (P3) how two businesses are organised 4. Learners must explain (P4) how their style of organisation helps them to fulfil their purpose 5. Learners evaluate (D1) the influence different stakeholders exert in one organisation TIP – Include the following: Range of different businesses Local, National, International, Global, Public, Private Not for profit/voluntary Sectors of business activity (primary, secondary, tertiary) Business purposes Supply of products or services, Difference between profit and not-for profit organisations Ownership Public, private & voluntary sectors Types of ownership (sole trader, partnerships, private and public limited companies, government agencies, worker cooperatives, charitable trusts) Main implications of different types of ownership on businesses (extent of liability, limitations to operation for public...
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...Book PPT = PowerPoint® AS = Activity Sheet R = Research E = Extension for Stretch and support NS = Non-supervised individual study time Week 1 Non-supervised individual study time and research: 40 hours Outcome Content Learner activity Resources Assessment and PLTS LO1: Know the range of different businesses and their ownership Introduction to unit and the structure of the programme Introduction to LO1 Range of different businesses: local; national; international; global; public; private; not-for-profit/voluntary; sectors of business activity (primary, secondary and tertiary) Business purposes: supply of products or services; difference between profit and not-for profit organisations Set up file for new unit Reflective questions AS1 Business types and ownership, Task 1; as individual or pair activity SB activities: • Starter stimulus • Tony and Guy • Aresenal • VSO • Primary, secondary and tertiary businesses Sample assignment brief Task 1.1 for P1; learners should spend the session time and NS time on this activity SB activities: • Poundland AS1 Business types and ownership SB Sample assignment brief Task 1.1 Stretch and support Assessment P1 PLTS RL BTEC National Business © Pearson Education Ltd 2010. Copying permitted for purchasing institution only. This material is not copyright free. BTEC National Business Unit 1 The business environment Unit 1 The business environment ...
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