Selecting A Form of Business Ownership Outline Introduction A. The Learning Goals of this chapter are to: 1. Describe the advantages and disadvantages of a sole proprietorship. 2. Describe the advantages and disadvantages of a partnership. 3. Desribe the advantages and disadvantages of a corporation. 4. Explain how the potential return and risk of a business are affected by its form of ownership. 5. Describe methods of owning existing businesses. B. One of the most important decisions
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business organization are the sole proprietorship‚ partnership and corporation. SOLE PROPRIETORHIP Sole proprietorship is a business owned and operated by an individual for his or her own profit. It is considered as the most common form of business ownership. Typically‚ the proprietor along with a few employees operates the proprietorship. He or she normally raises capital from personal resources or by borrowing and is responsible for all business decisions. The sole proprietor has unlimited liability
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the classic UGG boot. The classic UGG boot is made up of sheepskin material and features a fleece interior creating a preferred cozy-casual style. One major flaw that has not gone unnoticed is the UGG boots traction abilities. Since the boots rubber sole wears down very quickly‚ its capability to grip weakens. To resolve this matter‚ I propose a solution to replace the Classic UGG boots outsole with a more durable‚ non-slip material. Replacing the outsole is a simple fix to UGG boot and consumers
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sell the cakes without a brand name. Doc and Lyn have operated the company as a sole proprietorship. They have approached you to help manage and direct the company’s growth. Specifically‚ they have asked you to answer the following questions: What are the advantages and disadvantages of changing the company organization from a sole proprietorship to an LLC? Essence ***The McGee Cake Company‚ currently operating as a sole proprietorship‚ may benefit from forming a limited liability company (LLC). An
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Each traditional business form‚ sole proprietorships‚ corporations‚ and partnerships‚ all have their own advantages and disadvantages. Before you enter any of these types of business forms‚ you should always weigh out the advantages and disadvantages of what you are getting yourself into to see if it is worth it. A sole proprietorship is the simplest form of business organization where the owner is the business. There are many advantages to a sole proprietorship. One major advantage is that the
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business ownership‚ the Sole Proprietorship‚ the Partnership‚ and the Corporation. Each of these businesses have major advantages and disadvantages. The sole proprietorship is a business which is owned and managed by one individual. Some of its advantages are‚ the ease of formation‚ its management control‚ and its distribution of profits. Some of the disadvantages are‚ its unlimited liability‚ the lack of continuity‚ the capital requirements. Let’s begin with the advantages. A sole proprietorship is
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Sole Proprietorship When entrepreneurs set out to start a business venture‚ many of them start with a sole proprietorship. A sole proprietorship usually involves a single person who runs a business on his or her own. Sole proprietorships are small businesses that often take off to form larger business entities when the owner desires to do so or when the right opportunities are presented. Some of the disadvantages of having a sole proprietorship are the simplicity of operating the business‚ ability
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ownership‚ such as being a sole trader‚ in a partnership‚ franchises and limited companies. Sole Trader The advantages of being a sole trader are as follows; They are easy to set up – There are very few complicated forms to fill in and sole traders can set up and run a business almost immediately. They are easy to run – The owner can do what they want‚ when they want‚ without consulting with colleagues‚ as they are 100% in control of the business. Tax advantages – Sole traders are taxed
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ACCOUNTANCY 3 forms of Business Organization *Sole Proprietorship *Partnership *Corporation Sole Proprietorship A sole proprietorship is the simplest form of business organization because it is run by just one person. There is little complexity in starting up a sole proprietorship because it may involve just getting a license and finding some premises. This is why most of the businesses are in the form of sole proprietorship. It is normally feasible for service providers such as physicians
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are many ways to organize a business; the five most common ways are sole proprietorship‚ partnership‚ limited partnership‚ Limited Liability Company‚ corporation. Each of these forms of business ownership has many advantages and disadvantages. Sole proprietorship is a type of business that is run by an individual and is not registered with the state like a limited liability company (LLC) or corporation. The advantages of sole proprietorship are that it is easy to organize‚ very flexible since
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