sole proprietorship. 2. Income taxes Owners are responsible for filing taxes and is allowed to file taxes as part of their personal income taxes. 3. Longevity This depends completely on the owner and there continued ability to operate the business. The operation of the business can be significantly affected if the owner becomes sick or dies. 4. Control owners have complete control of the business. The owner is totally responsible for all decisions pertaining for business operations
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BUS3062 Assignment 1, Week 1 1. Define the terms finance and financial management, and identify the major sub-areas of finance. Finance is the way in which money is used and handled; especially, the way in which large amounts of money are used and handled by governments and companies (Merriam-Webster, 2014). Financial Management is the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization (Businessdictionary, 2014). The major sub-areas
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partnership between Lou, Jose, and Miriam. This being said this partnership is based on Miriam taking most of the financial risk from being the primary financial investor. This type of business also pays quite a bit of taxes due to the nature of products sold. These various taxes are paid in many ways and to different organizations. One of these ways are on the alcohol at time of initial sale to the business. This is unless they manage to become tax exempt. Secondly they must then charge sales tax
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in the levels. The organization of the public health is grouped in different ways. The domain is managed on different levels that vary from one level to the other. The federal, the state and the local levels have different structures aimed at improving the health of the people. Leadership and organization in the three levels Federal public health is the largest level. The functions
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between the assets of the business owner and the business itself. Business assets can be used to pay personal debts and personal assets can be used to pay business debts as sole proprietorships are subject to unlimited liability. • INCOME TAXES – All income generated through sole proprietorships is considered ordinary personal income tax to the owner and is subject to the highest rate of taxation by the Internal Revenue Service. • LONGEVITY/CONTINUITY – Because the business owner
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the most common (Lau and Johnson, 3013). They are inexpensive and easy to operate. They are great for small businesses that do not require large capital needs. All profits and losses are figured into the owners personal taxes. The proprietor does not share management decisions or profit. All control is vested in one person. These businesses aren’t registered with a secretary of state office, so they can operate anywhere. These advantages; however, do not outweigh the disadvantages. The business
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affect management. Some disadvantages are that they are expensive to create and have many state and federal laws that they must abide by (Choose Your Business Structure, 2015). In 1986 there was a tax reform act in which corporations were allowed to have a special tax designation applied for and may be accepted by the IRS. It offers the same benefits of that of a corporation except the special tax provision. The difference is that in a normal corporation makes a profit they must be taxes to the
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business that is owned by one person, and is commonly known as a small business. It is preferred by individuals who want to start their own business because they can make all the decisions regarding payroll, hiring and firing of employees ("Doing Business as a Sole Proprietor,") Business owners of this type file their own taxes. The owner can also sell the business without the approval from others, since they own the business outright. Personal liability is also a factor when opening a business as
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To: Mr. XYZ From: ABCD Date: 06.05.2015 Subject: Research on the right form of business entity Mr. XYZ, Conducting thorough research on the plausibility of choosing a specific form of legal business entity form for a certain specific business, several facts have been learned. I have been able to understand why it is always very much needed to know and verify the right form of legal structure to be applied to a business before actually setting up the business and carry on with its operation
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into bankruptcy. General Motors and Chrysler accepted a loan package from the federal government while the Ford Motor Company decided to try and make it on its own. The loan package given to GM and Chrysler came with strict conditions that it cut its labor costs and reorganize its debt obligations. Skip to next paragraphFord, however, decided to try and improve its competitive position without the assistance that federal loans provided GM and Chrysler. In order to accomplish this, Ford had to reduce
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