Part A The Report Sole Proprietorship This is the most common form of business. The business and the owner are the same. That means all debts and liabilities are the responsibility of the owner. The advantage of this form of business is that it is so easy to start. Basically, you just start selling stuff or providing a service. Of course, if permits or special licenses are needed, you still have to get those. The disadvantage is that you can't bring in a partner because there can only be one
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LIT Task 310.1.2-01-06 Part A 1. Sole Proprietorship – the simplest form business. The business is owned and operated by one person and there is no legal distinction between the business and its owner. The owner of a sole proprietorship assumes all responsibilities, liabilities and profit of the business. • Liability- One major disadvantage of a sole proprietorship is the liability. As a sole proprietorship both the owner and business are one and the same and therefore both are
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organization. Sole proprietorship is controlled by only one person. The owner is responsible for all debts of the business (The basic of sole proprietorship, 2005). And the income or loss will be reported on his or her personal income tax return because the assets of the business and the profits are basically the same for the owners. Owners are liable for any accounting errors on tax forms and obligate to pay any penalties that incurred (Accounting implication of a sole proprietorship). Due to the
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capital budgeting. E. capital structure. 6. A business owned by a single individual is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 7. A business formed by two or more individuals who each have unlimited liability for business debts is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 8. The division of profits and losses
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Describe the characteristics of the four basic forms of business ownership. A sole proprietorship is a business that is owned, and usually managed, by a single person. A partnership is a voluntary arrangement under which two or more people act as co-owners of a business for profit. A corporation is a legal entity created by filing a document with a state agency also known as the articles of incorporation. A corporation is considered to be a separate and distinct from its owners, who have a limited
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commercial transactions between different kinds of businesses, such as sole proprietorships, partnerships, franchised, and corporations. Sole proprietorships A sole proprietorship is a small business owned by a single individual. The owner is the business; the business is not a separate legal entity. The federal income tax obligation to be aware of when conducting business with sole proprietorships is that the sole proprietorship pays income tax only once on the income of the business, which the owner
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or business entity to create. There are four main forms to choose from: Sole Proprietorship, Partnership, C Corporation, and S Corporation. Sole Proprietorship A sole proprietorship is one of the easiest and main ones for a small business owner. The business will be owned by one person and it is simple to set up and gives the individual control over the business (Kimmel, Weygandt, & Kieso, 2009). The sole proprietor can run the business for any duration of time and sell it when
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most common ways to organize a business: Sole Proprietorship Partnership Limited partnership Limited Liability Company (LLC) Corporation (for-profit) Nonprofit Corporation (not-for-profit) Cooperative. Sole Proprietorships and Partnerships For many new businesses, the best initial ownership structure is either a sole proprietorship or -- if more than one owner is involved -- a partnership. Sole Proprietorships A sole proprietorship is a one-person business that is not registered with
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Legal, Social, and Economic Environment of Business Latasha Y. McMaster American Intercontinental University Abstract There are three types of Business: Sole Proprietorship, Partnership, and Corporation. In my opinion based on the scenario for this paper a sole proprietorship is the best option for starting a business. The inventor does not have to funding to back up the invention but thinks that the invention will be successful. The best way to start this business is to start small and
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buying a part of ownership into that business. When investing in bonds, you’re lending out money to the business with the hopes of that business paying back the bonds amount. The Business Environment The different legal forms of business are sole proprietorship, partnership, and corporation in which all forms have to function in the legal, social and economic backgrounds in the form of business. As business entrepreneur, one has to decide which legal form would best fit the company to guarantee success
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