***If a company decided to make more of A it must make less of B, what is this? Resource cost or opportunity cost? When the price is increased from $30 to $40, what will happen to the quantity demanded of the good? Quantity demanded will decrease Management is concerned that a new product just released has generated demand for only 5,000 units. The price of the product is set at $600. According to the law of demand, what must be done to increase the
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returns. Sole Proprietorships Sole proprietorships are the easiest form of business to set up and operate and are not subject to state or federal government approval, however, some local governments require business’s to obtain a license to operate. Advantages of sole proprietorships include ease and low cost, the owner makes management decisions, has exclusive use of all profits, and the business can be liquidated without approval from a partner or shareholders. Disadvantages include limited
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businesses that can be selected when a new business is being established, or a previously established business is considering changing legal form. These legal forms of business each have innate advantages and disadvantages related to legal liability, taxes, continuity, and control. The legal forms of business include: sole proprietorship, general partnership, limited partnership, C-corporation, S-corporation, and Limited Liability Company. Other forms of business include: family limited partnership
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settings, poor business policy or if there is an injury suffered implicated by company products. The liability falls on the owner of the company including all characteristics of the business and can be brought into any legal actions. * Income Taxes: As a sole proprietor the owner will need to report all incomes and damages via their personal tax report filing. * Longevity or Continuity of the Organization: Despite a sole proprietorship being rather easy to start there are other points to
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loans and debts. One of the advantages of doing business as a Sole Proprietorship is that it’s easy to create. Another key advantage is the autonomy. Since the owner or individual is the business, he or she may decide for themselves whatever business decision they feel is needed to make, including the business finances. Some disadvantages would be that it is impossible to bring in others to do business being there can only be one owner. This also makes it difficult to raise capital in terms of seeking
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the power to decide the constitutionality of a law even if it is not stated in the Constitution. YES, because by having a higher power decide the decision, it directly puts all the branches of government in its place. With a clear set of rules
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· Income taxes: There is no difference under the law between a sole proprietor and the sole proprietorship, meaning that all business income is considered personal income of the proprietor. There is no double tax; all taxes are paid once by the proprietor since there is no separate reporting of federal income tax. The disadvantage to the tax situation is that the proprietors’ income from the proprietorship may cause the individual to enter a higher tax bracket and therefore pay more taxes. However
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INTERGOVERNMENTAL RELATIONS IN FEDERAL SYSTEMS 39 7.5| INDEPENDENCE The actions and decisions of intergovernmental relations must be free from undue influence from political or private interests. They must have high-level commitment. The Productivity Commission has a very important role in Australia’s economic competitiveness in identifying reform priorities for Australia, and conducting detailed research and making recommendations on potential solutions. The Productivity Commission’s
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information about one another to complete voluntary exchanges of goods and services. Second, the business needs to trade or offer something of economic value such as a good, service, information or money exchanged between two entities. Business is the management and coordination of individuals and resources to accomplish certain production goals, usually for the purpose of making a profit. The combination of these three intricate parts of business
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REPORT SOLE PROPRIETORSHIP: • LIABILITY – All debits are the responsibility of the sole proprietor. There is no limit of liability for the owner. This includes the owner’s house and all personal property. • INCOME TAXES – All income earned by the business is recognized as personal income by the owner. There is no legal difference between the owner and the business. • LONGEVITY/CONTINUITY – The business fails to exist if the owner dies, or quits. • CONTROL – The owner is the business; the business
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