Partnerships and Corporations Advantages of Proprietorships and Corporations * Ease of formation * Subject to few regulations * No corporate income taxes. Disadvantages: * Difficult to raise capital * Unlimited liability * Limited Life * Often set up through LLC and LLP Corporations Advantages * Unlimited Life. * Easy transfer ownership
Words: 355 - Pages: 2
With the aid of examples and diagrams, show how these types of authority are applied in an organisation. [3 each] [11] Outline the main features of: i a sole trader ii partnerships Explain the main differences between Private Limited Liability Companies and Public Limited Liability Companies. [5 each] [8] [4 each] 4. a) b) With the aid of a diagram, briefly describe the main features of a procedure for ordering goods. Evaluate the importance of THREE of the main documents used in such a procedure
Words: 365 - Pages: 2
Structure that I have decided to choose for my restaurant “ The Savory Escape is a Limited Liability Company. A Limited Liability Company (also known as LLC) is a business organization that that combines elements of corporations and partnerships. It is designed to provide the advantages of limited liability, favorable taxation, flexible ownership structure and reduced legal formalities.A LLC provides the limited liability protection of a corporation, while avoiding the double taxation. I chose
Words: 325 - Pages: 2
P1 – Explain how knowledge or personal strengths and weaknesses can be applied to prepared for and contributing to a business What is an entrepreneur? An entrepreneur is a person who sets up a business or businesses, taking on financial risks to make profit. Qualities The qualities that are useful to a successful entrepreneur are you need to be confident and willing to take risks. Skills – Ability to carry out certain tasks after training Knowledge- Information that has been learned
Words: 873 - Pages: 4
Conversion of a Public Company into a Private company: Under the Companies Act (Section31), all public companies, whether originally incorporated as a public limited company or at any time converted into a public limited company (under section 44 of the Act), may be converted into a private limited company, if the members so desire. The essential conditions for such a conversion are:- * The company must not be listed on any recognised stock exchange. In case of a listed company,it will have to
Words: 1154 - Pages: 5
Explaining Basic Accounting Concepts and Business Structures The Hierarchy of Generally Accepted Accounting Principles identifies the sources for the accounting standards and principles. These sources include “FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins” (Kieso, Weygandt, & Warfield, 2007, p. 12). When companies prepare financial statements in accordance with GAAP, they sometimes run into situations in which some standards do not
Words: 651 - Pages: 3
businesses. An entrepreneur that starts a business must decide the legal form under which the new company will operate. The major forms of business organizations are: sole proprietorship, partnership, general partnership, limited partnership, limited liability partnerships, limited liability company, and corporation or under other available legal business forms (Cheeseman, 2010). The choice could become a critical factor of the success of the enterprise, since it will affect the cost structure, the
Words: 300 - Pages: 2
----------------------- CH. 13 Workout Problems PARTNERSHIP FORMATION – GENERAL GAIN/LOSS RECOGNITION Example: Two medical doctors, Dr. Do Little and Dr. Do Lot Decide to form a partnership whereby partner Little will have 1/3 interest and partner Lot will have a 2/3 interest in the LittleLot partnership. Partner Little contributes $50,000 while Partner Lot contributes $100,000 of assets described as follows: Dr. Do Little (33 1/3%) Little Lot Cash $50K $50K FMV Partnership int. $50K
Words: 2096 - Pages: 9
Law 494 Part 1 Shlensky v. Wrigley Facts: William Shlensky (plaintiff/appellant), minority stock holder for the Chicago Cubs baseball team sued the team directors who deferred the case to Phillip Wrigley (defendant/appellee) stating mismanagement and negligence because of the refusal of the directors in installing lights at Wrigley Field, home field for the Chicago Cubs. Procedural History: Plaintiff original case was lost at trial and plaintiff appealed. Issue: The issue
Words: 1709 - Pages: 7
Industry Analysis: 1. Industry trends: Indian and Global perspectives, recent happenings Mahindra & Mahindra Ltd. is the flagship company of the Mahindra group presence in the Aerospace, Agribusiness, Automobile, Components, Defense, Energy, Farm Equipment and Logistics industries. Let take a look at the industry trends in its main line of business Automotive and Farm Equipment. Automotive Industry: The Society of Indian Automobile Manufacturers (SIAM) plans to propel the Indian
Words: 497 - Pages: 2
