Organizations and Key Characteristics and Differences Student # 000258452 6/12/12 Part A The Report Sole Proprietorship A sole proprietorship is a privately owned business, that is owned by one person who has unlimited and unshared liability. The proprietorship, since managed by one person, has no need for any type of agreements or formalities. The self-governing aspect of the sole proprietorship, allows for the owner to make decisions on their own without criticisms and the complexities of added
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Task 1-A Sole proprietorship 1. Liability An owner has unlimited liability both personally and as the company owner. Liability is a disadvantage in a sole proprietorship. 2. Income taxes Owners are responsible for filing taxes and is allowed to file taxes as part of their personal income taxes. 3. Longevity This depends completely on the owner and there continued ability to operate the business. The operation of the business can be significantly affected if the owner becomes
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types of organizations including, but not limited to, Sole Proprietorship; General Partnership; Limited Partnership; C-corporation; S-corporation; and Limited Liability Company. Each type of business organization has its own benefits, drawbacks, and restrictions. This report will summarize each type of business organization and explain the drawbacks and benefits in a clear, concise, and easy to understand way. Sole Proprietorship A Sole Proprietorship is exactly what it sounds like. It is a company
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benefits and limitations. As with any type of business venture or partnership, there are financial advantages and disadvantages of normal day-to-day operations that can lead to court actions as a result of specified liabilities involved. In the matrix provided below, comparisons and contrasts of personal liability exposure associated with sole proprietorship, general partnership, limited partnership (LP), corporations, and limited liability companies (LLC) in a lawsuit for breach of contract is shown
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considered the pros and cons of the available models. It is my recommendation that you convert your Sole Proprietorship into a Limited Liability Company. LLC Details A limited liability company is a relatively new business model that combines the protection of a corporation with the tax treatment of a partnership. This model grants owners the flexibility to be taxed in the same way as a partnership or a corporation. It allows for the business to be owned and run by one or more individuals called
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Lit1 Task 1 Organization of Business Sole Proprietorship: Most common form of business today. Legally speaking the sole proprietor and the business are one in the same. Any legal issues such as law suits and tax liabilities are the same and the sole responsibility of the owner. There is no autonomy, no differentiation between the business and the owner. If the business gets sued, it is the personal assets of the business and the owner that are in jeopardy. It is also the easiest form of business
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company. The reading assignment included descriptions on Sole Proprietorship, General Partnership, Limited Partnership, C-Corporation, S-Corporation, and a Limited Liability Company. In this task, a breakdown of characteristics, advantages, and disadvantages will be described about each organizational form. Types and Characteristics of Business LIT Task 310.1.2-01-06 Sole Proprietorship Most businesses start as Sole Proprietorships because they are the easiest to begin and they are the most
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Forms of Business Ownership Characteristics Sole Proprietorship: The business and the owner are the same entity; there is no distinction between the two. It is very easy to start-up. It can be difficult to raise working capital. • Liability – The business owner is fully liable for all business debts. • Income Taxes – All profits or losses are passed through the business to the business owner. The business owner reports profits or losses on their individual income tax reports. The business
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Selected Answer: | sole proprietorships. | Correct Answer: | sole proprietorships. | | | | | * Question 2 3 out of 3 points | | | Based on data gathered from the U.S. Census Bureau, _____ are less common than _____ but they tend to be larger and more profitable than _____.Answer | | | | | Selected Answer: | partnerships; sole proprietorships; sole proprietorships | Correct Answer: | partnerships; sole proprietorships; sole proprietorships | | | | | * Question
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owners must consider the size of the business, the taxation of the business, the liability of the owners and the ability to raise capital to finance the business (Parrino, Kidwell & Bates, 2012). The owners will then choose one of the 3 different forms: sole proprietorship, partnership or corporation. Sole Proprietorship Sole proprietorships are businesses that are owned by a single person. A sole proprietorship is the easiest to form and the most common form of business. One advantage of
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