research and justify why they prefer the corresponding business form. Sole Proprietorship “The sole proprietor is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self- contractors or business owners (www.investopedia.com).” A Sole Proprietorship is the simplest, most common, oldest form of business to be owned and operated
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available to you. Will you be a Sole Proprietor or a Corporation or everything in between? The following report will examine six different business organizations in detail. Sole Proprietorship: is when the business is fully owned and managed by one person (others can be employed to help run the business) as the sole proprietorship only monetary income is from the business, you don't receive a paycheck. If you need money for living expenses, you take a draw. A Sole Proprietor, personal and business
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SOLE PROPEITORSHIP: This is the most common form of business today. The sole proprietorship is owned by a single individual who makes all of the business decisions when it comes to the operation of the business. Sole proprietorships are not legally differentiated from the owner; therefore the owner is legally liable for any business debts that are incurred or any lawsuits brought against the business. It is also much harder for sole proprietors to obtain credit since they are using their own
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Expansion/ Location, and Compliance/Convenience/Burden Sole Proprietorship The sole proprietorship is the simplest form of business it is not a legal entity. It is best described as one person who owning a business and is personally responsible for the business debts. There is unlimited and unshared finanicial liability in a sole proprietorship. The assets * and liabilities whether it be business or personal are not differenciated. * A sole priprietorship and the business is taxed as a single
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Accounting Accounting is an information sciences used to collect, classify, and manipulate financial data for organizations and individuals. Accounting is instrumental within organizations as a means of determining financial stability. Accountants are responsible for determining an organization’s overall wealth, profitability, and liquidity. Without accounting, organizations would have no basis or foundation upon which daily and long-term decisions could be made. The budgets for marketing activities
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TASK 1 PART A SOLE PROPRIETORSHIP Sole Proprietorship is a business organization where the owner and the business are one and the same. No legal difference. A few advantages of sole proprietorship is that the individual proprietor owns and manages the business and is responsible for all business transactions. The owner is also responsible for all debts and liabilities incurred by the business. I believe the most significant disadvantage as a sole proprietorship is that fact that if sued, the
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discuss seven business types; sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporation, and will give a scenario for each. In addition, I will justify why the business form is preferred for the scenario given. Sole Proprietorship: Sole Proprietorship is the simplest form of business (Cheeseman, 2010, p. 530). In a sole proprietorship, the owner and the business are one. “Sole proprietorships are the most common form of
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organized. An entrepreneur is the person or persons who form a business and the type of business they form is dependent upon their particular needs. Sole Proprietorship The simplest form of business organization is the sole proprietorship. The business and the business owner are one entity. It is very easy and inexpensive to form a sole proprietorship. As a result, this is the most common type of business in the United States. There are also other advantages to doing business this way. The owner
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should continue to be a sole proprietorship or if he should switch to another business entity. I will help him do so by explaining each entity and how they relate to his business situation. I am the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never
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structure to use. Sole Proprietorship Sole proprietors have limited formalities to follow and very little guidelines to adhere to from, local, state and federal administration. Since there is only one owner, no profits have to be divided which lets a sole proprietor use company assets in any manner. One immense advantage of a sole proprietorship is the unlimited level of autonomy the owner has to maneuver his business. However, a key disadvantage of a sole proprietorship is the absence of
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