Task 1 Part A Sole Proprietorship A sole proprietorship refers to a form of organization owned by a single individual. In this business, a single person makes all the decisions and does not have to engage a legal department to approve contracts. The owner of such a business can only use personal funds even though he or she may have separate checking and savings accounts for the business. The first characteristic of this form of business enterprise is liability. A sole proprietor suffers
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LESSON : 1 MEANING, CHARACTERISTICS AND TYPES OF A COMPANY STRUCTURE 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.0 Objective Introduction Meaning of Company Characteristics of a Company Distinction between Company and Partnership Types of Company Summary Keywords Self Assessment Questions Suggested Readings OBJECTIVE After reading this lesson, you should be able to: (a) (b) (c) 1.1 Define a company and explain its features. Make a distribution between company and partnership firm. Explain the various
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Marks Part A: Foundations of Business 1. 2. 3. 4. 5. 6. Nature and Purpose of Business Forms of Business Organisations Public, Private and Global Enterprises Business Services Emerging Modes of Business Social Responsibility of Business and Business Ethics } } } } } 22 26 22 22 12 16 120 20 18 12 50 Part B: Finance and Trade 7. 8. 9. 10. 11. Sources of Business Finance Small Business Internal Trade International Business Project Work 30 16 30 14 30 120 20 20 10 50 PART A: FOUNDATION OF BUSINESS
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Task 1 Part A SUBDOMAIN 310.1.2-6 In today’s world, it is imperative that entrepreneurs are well versed in business forms. Choosing the wrong form can prove to be disastrous. Below is a list of business forms that are in use today. Sole Proprietorship: Liability – A sole proprietor has unlimited liability. If insurance or business assets are not enough to cover company debts, the owner’s personal assets are accessible. Income Taxes – Legally, the sole proprietor and business and are
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A business undertaking is an organisation which is engaged in some industrial or commercial activity. It represents an institutional arrangement for carrying on any kind of business activity. It may be owned and controlled by a single individual or by a group of individuals who have entered into a formal or informal agreement to jointly conduct the business. Every business undertaking is a separate and distinct business unit. It has its own identity and separate ownership. It can be distinguished
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Danny Edwards De Castro V. Vastola, 877 A.2d 372, 379 N.J. Super. 277 (2004) Facts: On March 18, 2004 plaintiffs, Carol Kilarjian and Dave de Castro and defendants John and Joan Vastola entered into a contract to sell the Vastola’s house on June 15, 2004. On June 14th the defendants’ real estate attorney wrote plaintiff’s real estate attorney notifying them that they will not convey the title. The reasoning for breaching the contract is that Joan Vastola has spinal muscular atrophy that has gotten
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is no legal separation between the owners and the business. Hence, the partners’ personal assets can be seized to pay the debts of their company when the company’s assets are insufficient. A general partnership cannot file bankruptcy when it possessed excessive debts, which means that the individual partners will each have to file bankruptcy to get relief from the debts. Hence, partners will try to avoid risks and it restricts the expansion and growth of the business. Others change their legal status
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Sole Proprietorship A sole proprietorship is a business that is owned by one person. This person may operate the business or he/she may contract the work out to another individual. The owner makes all the decisions concerning the business regardless of who actually performs the work. The limitless and peerless accountability is one of the key characteristics of the sole proprietor. Advantages of a sole proprietorship Some of the advantages of a sole proprietorship are the simplicity and autonomy
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Basic Accounting Concepts and Business Structures David Lickem ACC/537 April 15, 2013 Basic Accounting Concepts and Business Structures The accounting profession as a whole is extremely complex and ripe with regulations and rules. It is also enormously important to any organization, big or small, and thus can be a very intimidating career choice. As with anything else though, reaching a destination requires a starting point, and in accounting, a good starting point is to understand basic
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running of his business. * David will not be bound by accounting standards and legal regulations. * David can use accounting packages to report financial position of company- easier to use. * David does not pay a separate income tax for his business (Birt et al. 2012). Disadvantages: * David as the owner will have full and sole liability for all business debts. * As the business is not a separate legal entity, David as the owner will be at threat of claims being made against his
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