made it possible for sole proprietorships to do business worldwide without greatly increasing their costs, should they be considered, for some purposes, the equivalent of other business forms? Why or why not? As a sole proprietor, they should be treated as such. No matter the business and problems that may arise, the sole proprietor is still responsible for everything that happens, in whatever country. A franchise is separate between owners across the country, while a sole proprietor would own
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1. Explain why investors should use the statement of cash flows. Cash flow is one of the most important measurements used by investors in valuing a company. You will hear the term used in the context of understanding how much a company is really growing (or not) after accounting conventions are stripped out of the income statement. Cash flow measures the amount of cash that a company brings in and uses during the course of an accounting period (quarter or year) after all fixed expenses are eliminated
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Explaining Basic Concepts and Business Structures Kristin Elam ACC/537 March 24th, 2014 Rebecca Kime Topic 1: Identify and describe the sources of GAAP. Identify source hierarchy and why it is important. “Although principles and practices continue to provoke both debate and criticism, most members of the financial community recognize them as the standards that over time have proven to be most useful.” (Keiso, et all, 2007, (2007). Financial Accounting, Ch. 1). Defining
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operate Next we need to look at the “type” of business model you are going to establish. With the business plan presented, I believe we should look at either a sole proprietorship or a Limited Liability Company (LLC). First option is to go forward with one partner as an LLC. The second option is go it alone, as a sole proprietorship. It is my firm belief that with your extensive background and business sense, you should take this project on with one investor and form an LLC. As with each model
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professions, and personal service trades, sole-proprietorship is predominant. Examples are Laundromats, beauty parlours, repair shops, consulting agencies, small retail stores, medicine, dentist accounting concerns, boarding-house, restaurants, speciality ships, jobbing builders, painters, decorators, bakers, confectioners, tailoring shops, small scale shoe repairers and manufactures, etc. The partnership is suitable in all those cases where sole proprietorship is suitable, provided the business is to
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business. Background information There are a range of legal structures associated with different forms of business: 1. Sole trader businesses are the easiest to set up because there is no complex paperwork. The business and the owner are the same person in law. The sole trader does not have limited liability which means that they are responsible for all the debts of the business. The sole trader has to produce an annual accounting return for the Inland Revenue. 2. Partnerships are set up by a Deed of
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as it evolves from a start-up to a major corporation are: sole proprietorships, partnerships and corporations. The advantages of a sole proprietorship are that is is easily and inexpensively formed; is subject to few government regulations and it’s income is not subject to corporate taxation (but is taxed as part of the proprietor’s personal income). A partnership has many many of the same advantages and disadvantages as a sole proprietorship but a partnership is more complicated with regards to liability
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name of the business means interest in arts and crafts. These products are made up of light-weight materials with designs that will define your personality to meet your expectations and satisfactions. The proponents will be in the form of the sole proprietorship so that it will be easier to register the business. One proponent will be the general manager of the business while the two proponents will be considered as investors who will be sharing to the business’s capital. As the business goes, profits
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Sole proprietorship Sole proprietorship concern (also known as a sole trader/owner) is the most common and most favored option for individuals who want to establish a small business in Pakistan, or want to start a home-based business. This form of business is used by majority of start-ups on Pakistan, and it is the simplest way of giving corporate face to a small business Formation Following are the main steps to start a sole proprietorship business: · Finalize a business name. · Print basic
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businesses are sole proprietorship and general partnership. A sole proprietor business is owned by one individual. A sole proprietorship business is the most common form of business and has many benefits. This type of business is easy setup, does not require large amounts of capital, and allows the single owner full management of decisions concerning the business. The proprietor receives all business’s profits and can easily transfer or sell the business if desired. The liabilities and risks of sole proprietorship
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