Solution: It is the management of current assets, such as inventory, and current liabilities, such as money owed to suppliers. 1.8 Organizational form: What are the three forms of business organization discussed in this chapter? Solution: The three forms of business organization we discussed are sole proprietorship, partnership, and corporation. 1.12 Organizational form: Explain what is meant by stockholders’ limited liability. Solution: Limited Liability
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Student Answer: One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. Sole proprietorships are subject to more regulations than corporations. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.
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SOLE PROPEITORSHIP: This is the most common form of business today. The sole proprietorship is owned by a single individual who makes all of the business decisions when it comes to the operation of the business. Sole proprietorships are not legally differentiated from the owner; therefore the owner is legally liable for any business debts that are incurred or any lawsuits brought against the business. It is also much harder for sole proprietors to obtain credit since they are using their own
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for needs an additional twenty trailers; they will not be leasing their own equipment. Hence, a sales-type lease would not be the type of lease they should go with. It would not make any sense because they are not trying to compete in their own business; they are just trying to take advantage of an opportunity that has come along. This is used in capital leasing. The direct financing lease is accounted for the same way as a sales-type lease and it is also used in capital leasing. In a direct
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[pic] Credit Application Form |Prepared by FAM (Name): Tarun Makhija |Date Prepared: 18.04.2012 | |BUSINESS INFORMATION | |Existing Customer: Yes No |Phoenix Customer No.:
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Small Business Idea University of Phoenix Accounting ACC 561 Small Business Idea Establishing a new business requires examination of each of the four forms or business organization, and analysis of the advantages and disadvantages of each. Once these have been evaluated, a business owner will be able to make a more informed decision on which form of business organization is most appropriate for their idea. Each form of business entity is different in its advantages and disadvantages
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Accounting 11 Partnership vs Sole Proprietorship March 11, 2014 Thinking about starting your own business? Do you prefer to work alone? Or do you prefer to work with a partner? If you choose to work with a partner then the best business structure for you would be the partnership structure. First you must ask yourself; do we have the same vision or objectives on how to run the business? Are we able to communicate well with each other? Most important question of all, do you trust this individual
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Danone v. Wahaha: Lessons for Joint Ventures in China Steven M. Dickinson Harris Moure PLLC www.harrismoure.com Danone Group and its partner, Wahaha Group Company, are shareholders in a joint venture company that is the largest beverage company in China. A recent dispute between the partners now threatens to wreck the joint venture. What lessons can be learned from this dispute for investors considering new joint ventures in China? Disputes such as this are not inevitable in China. They can be
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Business Organization In a joint-stock company, an entrepreneur raises capital by issuing stock certificates of its ownership. This normally involves selling shares of the stock to investors that guarantee them the right to a certain percentage of the company’s profits. Such companies include those that allow workers to invest in a 401k, which is beneficial to them. A limited liability company is a legal system that prevents creditors from seizing the personal wealth of a company’s stockholders
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Dear John, When starting your business there are several thing that you will have to examine. The first thing you must do is make a decision on what product or service you will provide. Ask yourself a few questions. Is the product or service that I am offering beneficial to the consumer’s livelihood? Will the product or service that I am offering be viewed as a need or a want? Is this product or service innovative enough to compete with my competitors? While going through this process keep in mind
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