Business Law Name Institution Business Law When starting a new business, there is a range of legal issues that the two graduates should put into consideration before making the business operational. Everything from the business structure to its operation to its name has legal implications. Before starting the business, the two graduates are required to sample legal concerns that they want to address with their attorney before they start the business (Miller, Cross, & Jentz,
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carefully reviewing the problems you are having with your business organization. I have come to the conclusion that that the best option for you and your company is for you to form your company into a Limited Liability Company. I am confident that after I share with you the reason for this change. You will also agree with me that a limited liability will be a good option for both you and your business. Mr.Broline, you are currently operating your business, Broline Woodworks, as a Sole proprietorship. I have
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For a new or proposed business, the selection of a suitable form of ownership business organisation is generally governed by the following factors! The selection of a suitable form of ownership organisation is an important entrepreneurial decision because it influences the success and growth of a business — e.g., it determines the decision of profits, the risk associated with business, and so on. As discussed earlier, the different forms of private ownership organisation differ from each other in
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is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self contractors or business owners. The benefit of the sole proprietorship is the tax advantage. The disadvantage of a sole proprietorship is obtaining capital funding. - Liability: The owner is personally liable for claims against the business. If a sole proprietorship
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The current business environment brings a lot of challenges and opportunities for new businesses. An entrepreneur that starts a business must decide the legal form under which the new company will operate. The major forms of business organizations are: sole proprietorship, partnership, general partnership, limited partnership, limited liability partnerships, limited liability company, and corporation or under other available legal business forms (Cheeseman, 2010). The choice could become a critical
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of a sole proprietorship might enjoy include total control of running the business, receiving all proceeds of the business, and multiple tax benefits. Disadvantages that the owner of a sole proprietorship might encounter include sole responsibility and liability for the business and limited access to funds and resources. • Income taxes – The business does have a separate income tax. All profits and losses from the business are reported with the sole proprietor’s taxes by filing the “Form 1040, and
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is the aim of this organization. Such as - making employment for the unemployed people, economic growth of the country, provincial development etc. • Argument # 2: Though to be profitable is not the aim of state enterprise, as a business organization it gains profit. This kind of profit is Submission to the government fund and is spent for the welfare of the country and people. • Argument # 3: Generally government is the capital supplier of state enterprise: But
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Basic Accounting Concepts and Business Structures Accounting is referred to by many as the language of business. Accounting is used throughout the business world and around the globe. Business accounting starts with (GAAP) which stands for Generally Accepted Accounting Principles; “These are guidelines or, more precisely, a group of objectives and conventions that have evolved over time to govern how financial statements are prepared and presented” ("What Are Generally Accepted Accounting
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Liability Exposure within Multiple Business Organizational Forms BUSINESS FORM LEGAL ISSUE PERSONAL LIABILITY EXPOSURE Sole Proprietor Sued for breach of contract The personal risk of exposure to liability is considerably high; the sole proprietor assumes unlimited personal liability for the breach of contract lawsuit and, under this business entity, puts all personal assets at risk for the sake of the organization itself. General Partnership Sued for breach of contract The personal risk of
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When deciding to go into business for oneself, it takes a great deal of time, thought, and risk. Becoming an entrepreneur is not a simple task. One of the most important decisions an entrepreneur must make is deciding what type of business he or she wants to open. Throughout this paper, I will discuss seven business types; sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporation, and will give a scenario for each. In
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