PART A Sole Proprietorship: A type of business where there is no legal distinction between the business and its owner. • Liability – What a business or an owner of the business can be subject to. An owner is personally liable for the debts and or actions of the business. • Income Taxes – Because there is no distinction there is no separation of taxes between person and business. The owner is solely responsible for reporting all business income or loss on his / her personal tax return. • Longevity
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1. Three forms of business organizations are sole proprietorship, partnership and corporation. The sole proprietorship is the least regulated of the three. One person who keeps all of the profits owns it. The owner is also financially responsible for the business and its debts because there is not a division between personal and business assets and income. The life span of this type of business is limited to the life span of the owner and the owner’s own assets limit the amount of equity that can
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Running head: SMALL BUSINESS IDEA PAPER 1 Small Business Idea Paper Napoleon Melton, Jr. ACC/561 September 5, 2011 James Sullivan SMALL BUSINESS IDEA PAPER 2 Small Business Idea Paper Establishing a small business requires the cultivation of a business idea to a business plan that successfully outlines its unique product or service, the rationale for choosing the business organization in particular for the unique product or service, and the financial statements & implications associated
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An Inventor and His Struggles to Start His Business Troy Wollenbecker AIU Online Abstract Troy has an invention that he wants to start a business around. He finds out very quickly all the questions he needs to find answers to. Troy has a family and low net worth to get things moving. Troy also knows little about managing and financial responsibilities of running a business. These are all struggles Troy faces in the midst of inventing and patenting my project. Making the correct decisions
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purpose of this paper is to demonstrate my grasp of the learning objectives The Family and Medical Leave Act (FMLA) of 1993 is an act that was passed during President Bill Clinton administration. The bill was signed into law on February 5, 1993 and took effect August 5, 1993. The law was created for the purpose of protecting employee jobs in the event that they have a family emergency that requires the employee to be away from their job for an extended period of time. The Act was also created to offer
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not have the authority. This brings up the legal issue of agency. Did Janet have the authority to act as an agent and sign into a lease for the partners? Was she acting as an agent of Hal’s when she signed the lease agreement? In the text book Business Law: The Ethical, Global, and E-Commerce Environment the authors collaborate and describe the creation of an agency relationship. “An agency is created by the manifested agreement of two parties that one party (the agent) will act for the benefit of
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A sole proprietorship is a business with only one owner, that’s not a corporation of any kind. Many business owners automatically start a business as a sole proprietor when they launch their small business. Pros of Sole Proprietorship: • Sole proprietorships are easy to set up. • Sole proprietorships are inexpensive to set up. • Sole proprietors don’t have to keep as many records for the IRS as corporations do. • Sole proprietors control their business finances and profits exclusively
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Starting a business is a challenging process. It is imperative to consider what form of business would best suit the unique product or service. The decision to form a specific type of business depends on many factors including tax, accounting and legal implication as well as the structure and liability of the business. In this paper the focus will be on establishing my wedding photo studio, the advantages and disadvantages of different business structure and the consequences associated with each
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A(1). A principal is a “party who employs another person to act on his or her behalf” (459). Thus, the principal is Fab Flowers. An agent is a “party who agrees to act on behalf of another” (p. 459). Thus, the agent is Ben. These two parties together make an agency. In this case Fab lowers and Ben have formed an express agency. This occurred when Fab Flowers agreed with Ben, whether oral or written, that Ben would represent Fab Flowers to purchase wholesale flowers in Ecuador for Fab Flowers
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Small Business Idea Paper University of Phoenix ACC/561 September 24, 2012 Introduction It has been published in the news media that the government of the United States will open up some opportunities for businesses by releasing some funds. This week’s assignment is to discuss the forms of business organizations. Also, the intent of this paper is to discuss the accounting structure for the lending process along with all the legal documentation. The intent of the paper will
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