Accounting Accounting is an information sciences used to collect, classify, and manipulate financial data for organizations and individuals. Accounting is instrumental within organizations as a means of determining financial stability. Accountants are responsible for determining an organization’s overall wealth, profitability, and liquidity. Without accounting, organizations would have no basis or foundation upon which daily and long-term decisions could be made. The budgets for marketing activities
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follows; sole proprietorship, partnership, limited liability company (LLC), and a corporation. These forms have their own pros and cons, tax implications, as well as reports to the financial accounting standards board (FASB) or have established laws set by the Sarbanes-Oxley Act (SOX). Sole Proprietorship Sole proprietorship refers to someone that owns a business that is not incorporated and manages the business independently ("Entrepreneur", 2012). One example of sole proprietorship, are small
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Subchapter S Corporation allows the owners to have limited liability, but also function as a partnership or sole proprietorship. Another advantage is shareholders can easily leave the company without drastically affecting the business. The disadvantages are stricter operational processes and shareholder compensation requirements, (Planning your business: Research, goals, and business plans (2011). Third, an additional business structure is a Limited Liability Company (LLC). LLC is a popular choice at
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of business organizations are a sole proprietorship, partnership and corporation. A sole proprietorship is the least expensive business to start. “To start a sole proprietorship, all you have to do is to obtain a business license required by the local and state governments” (Parrion, Kidwell, & Bates, 2012). A limited partnership can be more costly to form because an attorney will need to be hired to write and uphold the partnership contract. The partnership agreement identifies the type of
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and a construction company which is hiring for particular position. The business entity that represents the best choice for each business will be identified as well as the laws, regulations, taxation, and control each business must consider. The liability issues each business must protected from will also be discussed. The evaluation of the construction company will identify and discuss employment laws and regulations the company must abide by. Restaurant and Bar Scenario Based on information
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LIT 1 Part A SOLE PROPRIETORSHIP: Sole proprietorship is the easiest, fast and most common type of business structure to start. It is business that does not have a difference from the owner and the business. Responsible for all your business’s debts, losses and liabilities can even come after personal property. • LIABILITY: Owner has unlimited liabilities because there is no difference between the owner and the business. • INCOME TAXES: The taxes are taxed just like any other form of
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their business needs. Acme Fireworks is a sole proprietorship that is growing fast, the owner is considering changing the business entity. The decision that needs to be made is which entity will best suit their advancing needs. Acme Fireworks can choose between three entities: a partnership, corporation, and limited liability company (LLC). There are pros and cons for each of the different entities. When taking into account the current personal liability, if the contracts already in place are valid
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business owner should research the liability and risks that a business may encounter in the future. Depending on the type of business formation, a business owner needs to protect their personal assets in the event of a possible lawsuit. This paper will provide an explanation and scenarios for the different options of business formation: corporation, S corporation, franchise, limited liability company, limited liability partnership, partnership, and sole proprietorship. Corporation A future business
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are three legal categories when it comes to a form of business. The three legal categories are partnership, corporations and proprietorships. Most businesses that are started our sole proprietorships. They are owned and operated by one person. Partnerships are owned and operated by two or more people and corporations are legal entities that exist independent of owners (Brooks, 2010). Proprietorships have many advantages. One is that it is easy and inexpensive to form and dissolve. For less than
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Sole Proprietorship The business structure that is owned by a single person is called Sole Proprietorship. In this model, the owner has many advances such as, having full control of the company, receiving all profits, and tax benefits. However, on the other side, the owner has full and sole responsibility, and the funds and resources are limited due to the owner is the only one putting the money into the company. Characteristics of Sole Proprietorship Income Taxes – The business owner is required
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