There are three types of business Sole Proprietorship, Corporation, and Partnership. They all have their advantages and disadvantages with each one. Sole Proprietorship is a small business which is ran and operated by the owner. They are eye-catching to small investors because they are relatively easy to start up. The owner receives all the profit that is made from the business. Some advantages of starting a small business is that it’s very easy to start up. They don’t have to go through the things
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etc. There are several legal forms of business: sole proprietorship, partnership, limited liability partnership, Limited Liability Company, corporation, S corporation. Sole proprietorship In a first scenario a handyman who wants to get into business which will have little paper work and set up cost. The entrepreneur doesn’t have a partner and will be running the business alone. For this scenario the best business form will be sole partnership. This is a business with one owner which means the
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Consequence of Business Structure Sole Proprietorship • 75% of businesses make up this type of structure • One owner and small number of employees • Simple to start • Least regulated • Owner makes all decisions • Owner keeps all profits • Owner responsible to pay all bills • Owner has unlimited liability • Equity of business is tied to owner’s personal wealth • Ownership is difficult to transfer • Difficult to raise money for business Sole proprietorships are subject to lower income taxes
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University of Phoenix Material Business Forms Worksheet There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company (including the single member LLC), S Corporation, Franchise, and Corporation. 1. Research and provide three advantages and three disadvantages for each business form. 2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary
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are some options for you to look into, Sole Proprietorship, which is the most basic type of business to establish, you and you alone own the business and are entitled to all assets and liabilities. Advantages to having Sole Proprietorship is that it is the least expensive when starting up along with the easiest form of a business structure. You will have complete control over all decisions made when regarding your business. Disadvantages to Sole Proprietorship is that if you are unsuccessful you can
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corporate finance, state finance Accounting is an essential part of finance and economics Precise recording, reporting and assessment of financial deals and transactions of a business Preparation of statements or declarations concerning assets, liabilities, and outcomes of operations of a business 4 Panagiotis Dontis Charitos WBS, 2013-14 ECONOMICS - FINANCE – ACCOUNTING Accounting Finance Economics 5 Panagiotis Dontis Charitos WBS, 2013-14 WHY IS FINANCIAL INFORMATION ESSENTIAL
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exist. Some of them are more common than others. Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form are the seven forms of business that we are going to discuss in this paper. We are going to develop scenarios in which each of these forms of business would be the preferred form and justify why the corresponding business form would be most preferable. A sole proprietorship is the simplest form of business (Cheeseman
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personal liability, tax considerations, and the like” (Cheeseman, 2010, p. 529). The major forms of business organizations are, sole proprietorship, partnership, limited liability company, limited liability partnership, corporation, S corporation, and franchise. This paper will define these forms and provide individual scenarios of each and why they were chosen. Sole Proprietorship “A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor
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to multiple locations geographically. Sole Proprietorship In a sole proprietorship a company is owned and operated by one person. The only advantage to sole proprietorship is the owner will obtain the profits that the business makes as well as it is not difficult to obtain a sole proprietorship. The main disadvantage to sole proprietorship is the owner’s personal assets are liable for all business encounters. Due to this fact, a sole proprietorship is never the optimal choice for a form of
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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
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