the partnership organization form and the contents of a typical partnership agreement or article of co-partnership, in order to give the reader something of a basic background of a partnership in general. The second part shall talk about the advantages and disadvantages of partnerships, a partnership’s defining characteristics – namely, voluntary agreement, mutual contribution of money/property/industry to a common fund, co-ownership of property, mutual agency, unlimited liability, limited life
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Scenario: Sole Proprietorship- For twenty years, Mrs. Smith has greeted and welcomed residents of Chula Vista at her local business, Little Smith's Flower Shop. She has operated this business independently and has no employees other than occasional help from her daughter Lilly. Lilly plans one day to take over her mothers business when she retires. Mrs. Smith opens and closes the flower shop which operates M-F from 9-5. Having a sole proprietorship for this local flower shop "is the easiest
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Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Answer: The three main forms of business organization are (1) sole proprietorships, (2) partnerships, and (3) corporations. In addition, several hybrid forms are gaining popularity.
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A for LIT1, the Bullet/Listing approach (mentioned in the Task 1 Instructions) is below, which basically is you’ll describe each characteristic in usually about 1-2 sentences then move on. Example of how to apply this format: SOLE PROPRIETORSHIP: • LIABILITY – (1-2 Sentence Description) • INCOME TAXES – (1-2 Sentence Description) • LONGEVITY/CONTINUITY – (1-2 Sentence Description) • CONTROL – (1-2 Sentence Description) • PROFIT RETENTION – (1-2 Sentence
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pay in taxes, but it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money. The most common forms of business are sole proprietorship, partnership, corporation and S corporation. A more recent development to these forms of business is the limited liability company (LLC) and the limited liability partnership (LLP). Because each business form comes with different tax consequences, you will want to make your selection
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Legal Forms of Business Paper Matos-Negron, Gerardo E. LAW/531 6 May 2013 SOLE PROPRIETORSHIP Dave personal fitness trainer wants to develop a small gym in the back of his house to train private customer. Dave already safe enough money to purchase the require exercise machine but he needs to expand his house to place the equipment. Dave goes to the local bank, and requests a small business loan to acquire capital for his investment. Dave put his house as collateral in case the business fail
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four main types of business ownership are: 1. Sole proprietorship 2. General partnership 3. Limited liability company(LLC), and 4. Corporation These differ from each other in many ways: how many owners, risk and liability, the ease in which they are set up and dismantled, and the ways they are taxed. In the following paragraphs I will attempt to explain and provide examples of these four types. In the case of sole proprietorship, the explanation is self-evident. One person owns
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Accounting for Partnerships Rose Mossman ACC407: Advanced Accounting Professor Emily King June 11, 2012 Accounting for Partnerships There are different types of businesses sole proprietorships, partnerships, limited partnerships, limited liability partnerships, and corporations to name the most common. Along with the different types of partnerships there are also different kinds of accounting
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Tutorial 3 1. Happening Place Pte Ltd is regulated by Table A of the Fourth Schedule of the Companies Act. Tuf Tan holds 45% of the shares in Happening Place Pte Ltd. Advise Tuf Tan and the directors as to the following: a. The directors appoint Payne Soh as the company’s public relations officer (ie an employee). Payne Soh has a personal conflict with Tuf Tan on one occasion. As a result, at a requisitioned meeting of the members Tuf Tan manages to get a resolution directing the
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most important tasks a new entrepreneur will do. The reason is that whichever structure is chosen will have an impact on items like taxes the entrepreneur will pay, the amount of paperwork required for the business structure picked, the personal liability the business will have, and the ability to raise the money for the business structure picked. When going forward with the formation of the business, a person will have to know that each state has their own rules and regulations regarding the formation
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