because it affects everyone associated with business. We cannot have companies defining profits and losses differently. The video went on to discuss the three types of business organizations, which are: * Sole proprietorship – A business owned by an individual. Sole proprietorships are the most common, making up about 71% of the number of business in the United States. However, they generate about 65 of the business revenue in the United States. * Partnerships – A business owned by
Words: 376 - Pages: 2
company to have down periods when they are not making a profit and sometimes even spending more than they are bringing in. Companies that are publically traded are governed and sanctioned more than sole proprietorships (SP) and Limited Liability Companies (LLC). When the company is a sole proprietorship or a limited liability company government and regulations are basically reviewed and enforced internally. That’s a privileged that these types of organizations have. Owners may sometime not handle
Words: 432 - Pages: 2
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
Words: 489 - Pages: 2
Running head: SMALL BUSINESS IDEA PAPER 1 Small Business Idea Paper Napoleon Melton, Jr. ACC/561 September 5, 2011 James Sullivan SMALL BUSINESS IDEA PAPER 2 Small Business Idea Paper Establishing a small business requires the cultivation of a business idea to a business plan that successfully outlines its unique product or service, the rationale for choosing the business organization in particular for the unique product or service, and the financial statements & implications associated
Words: 1243 - Pages: 5
| Week 1 Discussion 1 | Christopher Blevins | 7/26/2012 5:38:45 PM | | | Goals like avoiding unethical or illegal behavior cannot be in conflict with the goal of the firm. It should not be the goal of any firm to maximize profits by any legal means necessary. They would not be in business for long if they didn’t. Many accounting frauds have occurred because management wanted to increase shareholder value and make profits for themselves. Just ask Bernie Madoff. According to Ross, “our goal
Words: 476 - Pages: 2
my business as an Entrepreneur. The business I choose would be run as a sole proprietorship business owned and controlled by one man (myself) even though many other persons will work for me. By choosing to run my business as a sole proprietor I may use a trade name or business name other than my legal name. I will justify the legal form of being a sole proprietor and its advantages over other forms. As an entrepreneur and a sole proprietor, I can declare my business income on my personal income tax
Words: 880 - Pages: 4
and Jose hire trustworthy individuals to work for them so that their sports bar can be successful. Extermination Business Frank, who wants to open a chain of exterminating business across the United States, will open them up under a sole proprietorship. A sole proprietor
Words: 1049 - Pages: 5
many business entities. 4. A sole proprietorship is easy to set up with a minimum of legal work. The business itself is not taxed. For tax purposes, the income of the proprietorship is treated as the income of the proprietor. The disadvantages of a proprietorship are unlimited liability for the debts of the firm, and difficulty in raising large amounts of capital as the business grows. A partnership has the same tax advantage as the proprietorship. The partnership per se does not
Words: 3282 - Pages: 14
Yen-Hui Chen Professor Steven J. Mandelkorn Accounting 757 05/20/2013 Section 351 In Section 351(a), it states that “no gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in control.” If we want to make qualified and successful transactions under Section 351 in order to make tax free transaction as it will not recognized and gain or
Words: 1914 - Pages: 8
Business Entities, Laws, and Regulations Many factors must be taken into consideration when starting a business. Location, supplies, and financing are not the only required business planning to complete. Laws, regulations, taxation, and plausible liability situations must be well thought out in a business plan in order for the business to succeed. Entrepreneurs and business owners can spend years deciding the type of business or corporation, which suits their goals best. The following
Words: 1206 - Pages: 5