projects that will add value to the firm. B. A business progresses from the sole proprietorship to partnership to a corporation ultimately. The advantages of a sole proprietorship are it is easy to start the business, requires less start-up funding, there are few governmental regulations imposed on in, and corporate taxes are not imposed. The disadvantages are it would be difficult for the business to obtain outside capital because it would be depended upon the credit worthy of the owners, the owners
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linking the major institutions which make up the global financial marketplace? The debt securities issued by governments. These low risk or risk-free assets form the foundation for the creation, trading, and pricing of other financial assets like bank loans, corporate bonds, and equities (stock). In recent years a number of additional securities have been created from the existing securities— derivatives, whose value is based on market value changes in the underlying securities. The health and
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forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. The forms a company may have from the start up phase to a major corporation phase are as follows: The first step of a corporation’s existence maybe a standard business license as the company starts operating. This is normally controlled as a sole proprietorship. The advantages for this type of form are that: it is easily created and very inexpensive. This form is
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External Source of Finance | Advantages | Disadvantages | Bank LoanBorrowing money from the bank at an agreed interest rate and then repaid in a fixed period of time. | * There is a set amount of money that is repayable, is paid over a certain period of time. * Larger amounts of money can be borrowed by the company in this process. | * It is more likely to have a higher interest rate which can change monthly. * Banks are less likely to offer a loan to a start-up business, as there is
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salons, boutiques, sundry shops and restaurants are predominantly sole traders. Many such businesses have grown into fairly large organizations. The owner is required to register with the Registrar of Businesses (ROB) Advantages of sole trader: 1. The psychological advantage of being one’s own boss – the individual makes his own decision as to how and when he wants to work. Thus, his ideas and decisions can be effectively carried out. 2. Legal formalities are minimal and start up costs
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sufficient manpower and expertise to complete the job in 18 months, and FFB’s existing employees are welltreated. The common application platform that is eventually established should be taken from the existing software packages currently used by our banks. If an outside vendor is to become involved via
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strategies for acquiring those funds. B. d. Proprietorship is an unincorporated business owned by one individual. i. Advantages 1. Easy to set up 2. Few government regulations 3. Income is not subject to corporate taxation but is taxed as part of the proprietor’s personal income ii. Disadvantages 4. May be difficult for a proprietorship to obtain the capital needed for growth 5. The proprietor has unlimited
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| Two Advantages | Some of the advantages of starting a sole proprietor type business are: the ease of start-up and the cost effectiveness. There are also savings from tax filing, as it can all be done in one simple form. The proprietor can hire employees and get the tax breaks associated with said job creations and the owner not only has, but can transfer full control of the business whenever he/she sees fit to do so. | Two Disadvantages | Some of the more prominent disadvantages are the lack
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very controversial theme, bringing different points of view. Some agree that its use is more advantageous than disadvantageous while others think differently. This paper shows the birth of the Internet, its founders, its pioneers, some advantages and disadvantages, and its future. This research also makes some suggestions for a better protection and functioning of the Internet. Internet Our New World “The Internet, sometimes called simply "the Net," is a worldwide system of computer networks
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Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Proprietorship is a business owned by single individual with following advantages: easy and inexpensive to form subject to few government regulations business is taxed as part of the owner’s personal income. Disadvantages: difficult to obtain the capital needed for growth unlimited personal liability for the business’s debts including
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