create. There are several advantages to a sole proprietorship these include that all of the management and decisions rest with one individual, all of the profits belong the business owner and the owner can utilize these profits as deemed necessary without consulting any other party and that all of the income is taxed as personal, so the owner only has to worry about one tax liability. Along with the advantages there are also several disadvantages these can include limited financial and professional
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debt. Currently Marks and Spencer has gone onto become a national business having 798 UK stores, 455 international stores. Today, Marks and Spencer is a public limited company where businesses are owned by shareholders with limited liability to which shareholders can only lose up to their investment. It also offers its shares to the general public, through the Stock Exchange market. Cancer Research UK, a not for profit/voluntary leading charity is dedicated to beating cancer. In 1902 the imperial
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Johnson, 2015) | Two Advantages | There are many advantages to this type of business. First it is easy to create a sole proprietorship. The entrepreneur in charge simply starts the business. Another advantage is autonomy. The owner is able to decide what they want to do with the business, concerning hours, rules, and regulations and decide all of the factors needed to run the business. ( Terence Lau and Lisa Johnson, 2015) | Two Disadvantages | There is also some disadvantages to a Sole Proprietorship
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| Sole Proprietorship | Description | Sole proprietor is most common way of doing business owned by single owner not incorporated. | Two Advantages | Easy to create. No time or costs simply start doing business.Autonomy owner is the business. Easy to make decisions. Own hours, grow as big or stay little. Owner decides. | Two Disadvantages | If owner dies business dies. Only one person hard to raise capital.Because it is one person, if you don’t have individual wealth the business will have
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DECISIONS MAKING WITH REGARD TO PROMOTION: 1.) THE PROMOTION BUDGET AVAILABLE The amount of money available for promotion is the real determinant of the mix. BIG companies can make greater and more effective use of advertising than firms with limited resources. Small businesses rely on personal selling dealer displays. 2.) THE NATURE OF THE MARKET The influence of the nature of a company’s market is affected by the Geographic scope of the market, its concentration and type of customers and
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Since this is a small business a Public Corporation, Subchapter S Corporation, Closely Held Corporation, Multinational Corporation, Limited Partnership, General Partnership, and Professional Corporation can all be eliminated. Some possibilities for Betty’s business might be. A sole proprietorship is the easiest and least expensive way to create a business organization (Kubasek, Brennan, & Browne, 2012). The LLC or Limited Liability Company provides the advantages of a corporation with the tax efficiencies
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the advantages and disadvantages of each form. The organizational forms a company might have as it evolves from a start-up to a major corporation are: sole proprietorships, partnerships and corporations. The advantages of a sole proprietorship are that is is easily and inexpensively formed; is subject to few government regulations and it’s income is not subject to corporate taxation (but is taxed as part of the proprietor’s personal income). A partnership has many many of the same advantages and
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principal forms of business organization? What are the advantages and disadvantages of each? A proprietorship, a partnership, and a corporation are the three principal forms of business organization. Advantages of a Proprietorship: 1. easily and inexpensively formed; 2. it is subject to few government regulations; 3. its income is not subject to corporate taxation but is taxed as part of the proprietor’s personal income. Disadvantages of a Proprietorship: 1. It may be difficult for a proprietorship
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Organization and Share Capital Transactions Page 688 Questions and Answers 1. Corporations can be classified in different ways. For example, they may be classified by purpose (e.g., profit, not-for-profit, or income trust) or by ownership (e.g., public or private). Explain the difference between each of these types of classifications. Ans. Corporations can be classified: • By Purpose -Profit: such as Tim Hortons’ -Not-For-Profit: such as Canadian
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sure exactly how it will be financed and whether or not I want to take on partners. I am interested and willing to learn the intricacies of my options to determine how to best proceed with my plan. Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario? Respectfully, John Owner Business Structure: Advice Letter July 21, 2014 Dear Mr. John Owner, John, I am in receipt of your letter, and wanted to get back to you with a response
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