1 Week Five Assignment Jerri Jordan BUS311: Business Law I (BBL1544A) Instructor: Jennifer Stephens 11/16/2015 2 Managing a company comes with great responsibility. Sometimes different changes will have to be made by the manager to better the company. Law relevant to the situation should be a major part of company changes. Not following these laws could negatively impact the company. Determine if the contracts with the businesses will be governed by common law or the Uniform
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Sole Proprietorship | | | The most common and simple form of business is a Sole Proprietorship. An individual proprietor owns and manages the business and is responsible for all business transactions. The business is normally financed by the owner – the owner bears all the financial risk. | It can also be less costly to start a business as a sole proprietor, which is attractive to many new business owners who often find it difficult to attract investors. | | Let’s look at the advantages
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The Report Sole Proprietorship: * Liability - Unlimited Liability, the owner is personally liable for all the business debt and obligations. There is no legal distinction between owner and business. * Income Taxes - Tax planning can be difficult to take advantage of lower income tax rates, due to all the income generated by business is treated as personal income. * Longevity/Continuity - As long as the owner is alive the business can continue. * Control – The owner has full
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profit, thus it should be every year. Investing more in the profit may be a good long term strategy but this will reduce a return to shareholder. However as a value investor I love this idea. Describe the difference between Corporation and Sole Proprietorship. [Hint: Please review our lecture notes slides and answer from four categories: Who owns the business? Are managers and owners separate? What is the owner’s liability? Are the owner & business taxed separately?] For cooperation the person
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Date: October 31, 2014 Re: Potential Business Model Recommendation I have completed my review the information regarding your company and considered the pros and cons of the available models. It is my recommendation that you convert your Sole Proprietorship into a Limited Liability Company. LLC Details A limited liability company is a relatively new business model that combines the protection of a corporation with the tax treatment of a partnership. This model grants owners the flexibility
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Task 1 Part A Sole Proprietorship A sole proprietorship refers to a form of organization owned by a single individual. In this business, a single person makes all the decisions and does not have to engage a legal department to approve contracts. The owner of such a business can only use personal funds even though he or she may have separate checking and savings accounts for the business. The first characteristic of this form of business enterprise is liability. A sole proprietor suffers
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1. Three forms of business organizations are sole proprietorship, partnership and corporation. The sole proprietorship is the least regulated of the three. One person who keeps all of the profits owns it. The owner is also financially responsible for the business and its debts because there is not a division between personal and business assets and income. The life span of this type of business is limited to the life span of the owner and the owner’s own assets limit the amount of equity that can
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SOLE PROPRIETORSHIP: A sole proprietorship is an independent business owned and operated by one person only. This person can choose to run the business by himself or herself or hire help. This type of business is the most common type out there. “There are over 17 million sole proprietorships in this country, representing over 73 percent of all businesses.” (Stevick, G.E. 2006. Pg. 7) -Liability: A major disadvantage of owning a sole proprietorship would be the unlimited liability the owner has
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owner can choose from is sole proprietorship, partnership, C corporation, and S corporation. Along, with the advantages and disadvantages of each type of business form. Sole proprietorship is the most common form utilized for a small business. This type of form is used, especially in the early stages of a business controlled by one person. This one person is directly responsible for the management and conduct of the company. The advantage of present the sole proprietorship is that this is least experience
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report you should have a greater comprehension of the different choices available. * Sole Proprietorship: To start off it is essential to have a clear understanding of what sole proprietorship means. As the sole proprietor you are the owner and the operator of that business. In more detail, the sole proprietor manages everything including setting up the business. An attorney is only needed if the sole proprietor plans to report the name of the business under a name other than their own. In that
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