life cycle. Business has the choice to start up as proprietorship, which is non corporate business ran by one owner. There is also a partnership, which represent more than one owner to the business. This is also a non corporate business as well. Under a partnership other forms of partnerships such as: limited liability partnership (LLP) or your limited liability company (LLC). The final stage of corporate life cycle exists once the company has gained a certain amount of capital that allows them
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major corporation. List the advantages and disadvantages of each form. Answer: The three main forms of business organization are (1) sole proprietorships, (2) partnerships, and (3) corporations. In addition, several hybrid forms are gaining popularity. These hybrid forms are the limited partnership, the limited liability partnership, the professional corporation, and the s corporation. The proprietorship has three important advantages: (1) it is easily and inexpensively formed, (2)
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laws, regulations, and liability issues that could affect the business endeavor before the concept becomes reality. To explain these responsibility about businesses the assignment is to consider two business ideas followed by a business scenario, which will be presented at the beginning of each subsection. In the evaluation of each business concept, there will be a discussion of which business entity would best represent the business in taking control, taxation, and liability issues that may arise
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his/her company are considered a single entity for tax and liability purposes. A proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but he/she reports business income or losses on his/her individual income tax return. The owner is inseparable from the proprietorship, so he/she is liable for any business debts. Partnership: a relationship of two or more entities conducting business
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the risks side, the entire capital contributions can be loos if business fail, and the fact that the sole proprietor has unlimited liability, are two characteristics worth listing. Sole proprietorships are good legal form of business for small entrepreneurial projects that can be funded with the owner’s own capital and personal loans, and where the risk of liabilities is minimal or can be easily mitigated by the proper insurance. Examples of this can be an individual’s lawn care service business
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There are three major types of organizations. There is the sole proprietorship, which is an organization that is owned by one individual. There is the partnership, which is an organization that is operated by more than one person. There is also a corporation. A corporation is an organization that buys and sells stock and their liability is limited to the amount of their investment. With these three types of organizations, there are some advantages and disadvantages to them (Zaheer, N.D). The advantages
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organizations is the limited liability partnerships and limited liability corporations. Limited Liability Partnerships A limited liability partnership, commonly abbreviated as an LLP is a business organization made up of partners. However, a limited liability partnership has the characteristic number of partners who have limited liabilities. According to Boone and Kurtz (2011), these specific partners are not therefore liable for the financial responsibilities of the partnership. This is the feature
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a business he will have limited funds to grow and expand his business. He will also be subject to unlimited liability, this is if a business goes bankrupt they can lose everything, even personal belongings. * Partnership businesses can be owned by two to twenty people. Here there are more people to generate more income to the business and bring more expertise to the organisation, however the income generated has to be distributed accordingly between them. Partnership organisations are
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Kidwell, & Bates, 2012). The business will be operated by yourself so that you will be in charge of the business from business liabilities, debts, and losses. The disadvantages of a sole proprietorship are that the amount of equity capital that can be invested is limited to the amount of assets owned by the individual and the individual has unlimited liability for all debt and obligations of the proprietorship (Parrino, Kidwell, & Bates, 2012). Also the owner you receive all profits made
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1-finance is essentially any transaction in which money or money like instrument is exchanged for another money or money like instrument. So we can say the concept of finance is very old it, has taken place probably since the roman or the Chinese dynasty era. Finance is used in the market. A market is a place that allows forces of demand and supply to operate. Where sellers and buyers trade services goods, contracts, for money or barter, this is the place where finance also takes place. You can’t
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