Forms of business ownership There are many options to consider when choosing to form a business organization such as: * Liability: who is responsible and are there limits to liability? * Income taxes: how are taxes paid? * Longevity or continuity of the organization: how to or what dissolves an organization? * Profit retention: how is profit divided? * Location (expansion): how are location or expansion decisions made? * Convenience or burden (compliance): how difficult is
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Task 1 Part A SOLE PROPRIETORSHIP: • LIABILITY –From a legal point of view there is no distinction 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
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M E M O R A N D U M TO: Ms. FROM: VP of Small Business Developing RE: Can you help me grow my business? DATE: November 11, 2012 _____________________________________________________________________________ Ms. C, I am glad to hear that your business is doing so well. I understand your concerns for the future and hope that I can provide answers and reassurances concerning the new direction for your company. I know that you want to expand your business financially and geographically.
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PART A Sole Proprietorship A sole proprietorship is a business form that includes just one owner. This business form is special in that there is legally no difference between the business and the owner. They are considered one and the same. Although there are advantages of this form, such as flexibility in setting work hours and profits of the business remaining in scope of control, there are also many disadvantages. One prime example that is probably the most discouraging is liability. If
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Types and Characteristics of Business LIT Task 310.1.2-01-06 Alicia R. Wilson Western Governors University Texas Abstract In Chapter 11 of the Legal and Ethical Environment of Business, examples of business structures were described. It is clear that there are pros and cons to starting any business; however it is very apparent that it is still the American dream to start a company. The reading assignment included descriptions on Sole Proprietorship, General Partnership, Limited Partnership
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Legal Issues in Business Organizations Task 1 Zachary Christenson Western Governors University 000447824 Family and Medical Leave Act Situation The Family and Medical Leave Act of 1993 (FMLA) was created to help assist employees deal with the difficulties of home, while creating an atmosphere of job security. The FMLA also helps cover employers from wrongful use of the FMLA by the employees. Although the document is extensive, there are three major provisions of the FMLA that apply to the
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Situation A: The Family Medical Leave Act applies to covered employers only and is provided to only eligible employees of covered employers. A covered employer is either a public agency, to include a local, state or federal government agency regardless of the number of employees. A public or private elementary or secondary school regardless of the number of employees it employs or a private sector employer with 50 or more employees. To be an eligible employee you must have been employed for at
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As Director of Human Resources for Company X, I have been directed to research and make recommendations concerning three personnel issues. These issues pertain to possible violations of the Family Medical Leave Act of 1993 (FMLA), Age Discrimination in Employment Act of 1967 and the Americans with Disability Act of 1990. Situation A involves the Family Medical Leave Act of 1993 and Employee A. Employee A has been employed by our company for two years and requested leave to assist at home due
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Ashley T LIT1 Task 310.1.2-01-06 Part A Sole Proprietorship – As a sole proprietor, you are your own business entity. You own and run your company, which means you are in complete control and assume sole responsibility of all legal and financial matters. • LIABLITY – There is no differentiation between the business and the owner, as they are one in the same. Therefore the business/owner takes full accountability and has limitless liability for all gains and losses the business obtains
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LIT1 Task 310.1.2-01-06 PART A Sole Proprietorship - This is considered one of the most common forms of business in America. There are advantages and disadvantages in being a sole proprietor. An advantage would be that you, as the sole proprietor, are your own boss. In contrast a large disadvantage would be that you, as the sole proprietor, are completely liable for every aspect of the business. * Liability: Sole proprietorships have what is considered to be one of the biggest risks
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