1. (TCO A) Which of the following statements is CORRECT? (Points : 10) It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required. Corporations face fewer regulations than sole proprietorships. One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level. One advantage of forming a corporation
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ABSTRACT In this paper, you will find information on the best choice of business entity for a new product that has excellent market potential. You will examine the pros and cons of each type of business structure. Business structures such as a Sole Proprietorship, Partnership, and Corporation, and ultimately why a corporation was the best business structure for this particular product. A woman has an excellent idea for a new appliance that she feels will benefit the needs of everyday consumers. However
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balances maintained, banks usually levy certain service charges for operating a Current account. Current Account can be opened by: • An individual who has attained majority. • Two or more individuals in their joint names. • Sole proprietorship concerns. • Partnership concerns. • Hindu Undivided Family (HUF). • Limited Companies. • Clubs, Societies. • Trusts, Executors and Administrators. • Others - Govt. and semi Govt. bodies, local authorities etc.
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Starting out with a commission based salary would help me save money by not having the overhead of starting my own business. It would also help me build a cliental for in the future if I ever decide to proceed out on my own and start my own sole-proprietorship. From my research, starting your own personal business in the beginning is very expensive, so it would take a large amount of time and saving to start your own. Many banks will not finance such large loans seeing how you have no proof that you
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· What risks and rewards might Matt experience if he moved forward with his business plan? · Evaluate Matt’s decision about forming a corporation. What benefits or challenges would incorporation provide to Matt? Would a sole proprietorship or a partnership be more desirable? Why or why not? Is retaining 55% ownership of the corporation’s stock a positive or a negative aspect of his business model? · Do Matt’s financial expectations support an investment of $100,000 by your
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business, which form do you recommend and why? The most recommended and simplest form of business is a sole proprietorship. An individual proprietor owns and manages the business and is responsible for all transactions. The owner is also responsible for all debts and liabilities. A sole proprietor can own the business for any duration of time and sell it when he or she sees fit. As owner, a sole proprietor can even pass a business to heirs. In this type of business, there are no specific business
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Acme Fireworks Outline I. Introduction A. Thesis Statement There are many benefits to having a sole proprietorship in the firework business, but if the sales decrease will the owner be able to maintain a fully functional business entity with the extra staff that were incurred due to the demand of more firework displays that were put into contract? The owner wants to know more and I will try and help him with his business through proposing a new business entity, different employment types
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Limited liability. C. Becoming a permanent legal entity. D. Profits taxed at the corporate level and the shareholder level. ( ) 6. Unlimited liability is faced by the owners of: A. Corporations. B. Partnerships and corporations. C. Sole proprietorships and partnerships. D. All forms of business organization. ( ) 7. "Double taxation" refers to: A. All partners paying equal
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|Q1a) |Advantages / Disadvantages of Sole Trader, Partnership, Limited Company | | | | |Ans.: | | |Advantages Partnership or sole proprietorship |Disadvantages of Limited Company
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“Executive Summary” Little Bumble Bees Daycare facility will operate as sole proprietorship and is located on the corner of North six street in Hopewell, Va. Our daycare facility is a full service child facility that offers 24 hours/ 7days a week care, with the exception of holidays. We offer services for children 3 months to 12 years of age. The Little Bumble Bees Daycare Facility will be focusing on the middle to upper class market. This group of families has both parents working, not allowing
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