LIT1 Task 2 Part A: The Form | Sole Proprietorship | Description | A sole proprietorship is a type of business where there is no legal distinction between the business and its owner. This is the most common form of doing business in the United States ( Terence Lau and Lisa Johnson, 2015) | Two Advantages | There are many advantages to this type of business. First it is easy to create a sole proprietorship. The entrepreneur in charge simply starts the business. Another advantage is autonomy
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entities are: Sole-Proprietorship, Partnership, and Corporation. She will then take the information given to her and make a decision on the scenario given to her. The scenario states that she is an inventor with no financial or management skills but would like to bring her product out in the world, out of the three business entities, which one should she pursue? Structures of Business As businesses come and go, there are three main entities that got them started, Sole-Proprietorship, General Partnership
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member LLC is also treated as a sole proprietorship for federal tax purposes. In this entity, all taxes and liabilities are solely the responsibility of the owner and the owner pays no corporate income taxes. Unlike other business entities such as a multi member LLC or corporation, if a sole proprietorship faces a lawsuit or is in debt in some manner, the business and the owner are liable for the debt. The business income is included in the personal tax return of the sole proprietor. Though there
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C) Agency cost analysis. D) Capital budgeting. E) Capital structure. Answer: A Topic: SOLE PROPRIETORSHIP 6.A business owned by a single individual is called a(n): A) Corporation. B) Sole proprietorship. C) Partnership. D) Closed receivership. E) Open structure. Answer: B Topic: PARTNERSHIP 7.A business formed by two or more individuals or entities is called a(n): A) Corporation. B) Sole proprietorship. C) Partnership. D) Closed receivership. E) Open structure. Answer: C Topic: CORPORATION
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that we will discuss are which are sole proprietorship, partnership, a C corporation, and an S corporation. All businesses have to choose what business form they want to operate the business in. There are four main business organizations that are used in the business environment today that has been mentioned previously. It has to be decided before the process begins what type of organization the owner wants. A sole proprietorship is a business owned by a single person
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Organizations and Key Characteristics and Differences Student # 000258452 6/12/12 Part A The Report Sole Proprietorship A sole proprietorship is a privately owned business, that is owned by one person who has unlimited and unshared liability. The proprietorship, since managed by one person, has no need for any type of agreements or formalities. The self-governing aspect of the sole proprietorship, allows for the owner to make decisions on their own without criticisms and the complexities of added
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establishing a business in Colorado Springs, Colorado, one must look at the local, state and federal ordinances and laws in establishing a business. The business owner must also decide on how the company will be registered in Colorado such as Sole proprietorship, Partnership, C corporation, S corporation, or an LLC – Limited Liability Company. This paper will show the advantages and disadvantage of each of these entities as it relates to a pawnbroker business, while also examining the different types
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Legal Forms of Business Consider each of the following forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. Develop scenarios in which each of these forms of business would be the preferred form. For each scenario, justify why the corresponding business form is preferred. In today business world entrepreneurs are presented with many forms of business organization to choose from to conduct
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structures to choose from such as sole proprietorship, partnership, limited liability partnership, limited liability company, corporation, S corporation, and franchise. To assist new business owners in choosing the appropriate structure, business owners will need to develop scenarios in which each business structure is preferred. Business owners also need to justify why the business structure is preferred. Sole Proprietorship Sole proprietorship is the most common and the simplest
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as one of the following: Sole Proprietorship, Partnerships, and Corporations. Small businesses are an important source of new (and often well paid jobs). In recent years, small business has accounted for 40 percent of all new jobs in high technology sectors. (Business Essentials, Seventh Edition, n.d.) Sole proprietorship, which is how most small businesses start, is owned by one person. Usually he or she has daily responsibility for running the business. Sole proprietors own all the assets
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