of business‚ the sole proprietorship‚ general partnership and corporation‚ while considering the advantages and disadvantages. After looking thoroughly at these types of businesses‚ we try to make an informed decision in which type to recommend for the project‚ keeping in mind all the aspects of the persons “limitations”. These three types of businesses all have their advantages and disadvantages and based on those we determine that general partnership would be the smartest way to proceed‚ as the
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fees for both. GENERAL PARTNERSHIP: Two or more components/people come together to share a business. Each partner shares responsibility for P&L. LIABILITY: Both entities have unlimited liability. Should one partner conduct illegal activities then the other partner is as equally responsible. INCOME TAXES: Self-employment taxes‚ income taxes‚ partners must report their share of P&L on their personal tax returns. A tax reporting entity. LONGEVITY/CONTINUITY: A general partnership generally dissolves when
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the business in return for a percentage ownership. Business Entity For this business scenario the best business entity is a limited partnership or special partnership. There are two types of partners in a limited partnership: general partners and limited partners. General partners invest capital‚ manage the business‚ and are personally liable for partnership debts. Limited partners invest capital but do not help with the management aspect and are not personally liable for debts beyond their capital
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sold. A partnership is a legal entity that is jointly owned by two or more individuals. As with a sole proprietorship‚ the owners are personally liable for all debts of the firm unless a special type of partnership‚ the limited partnership is set up. Limited partnerships are complex legal structures‚ and one partner must retain unlimited liability for the debts of the firm. Even partnership agreements for regular partner ships can be quite complex. The advantages of a partnership include: a
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in either type‚ (sole proprietorship‚ partnership‚ and corporation) each have its ups and downs. All entrepreneurs must decide which form of legal ownership best suits their goals. Take a look at sole proprietorship. This type of business is owned and usually operated by one person. That one person is also responsible for all of its debts. It has a low start-up cost but its hard to borrow money to start up or expand. Now let us move on to partnerships. This is a business with two or more owners
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1 Assignment 01 11-13 -12 1). A limited partnership allows some of the investors to limit their liability. Under these terms‚ one or more partners are designated general partners and have unlimited liability for the debts of the firm; others contributors are designated limited partners and are liable only for their initial contribution. For example‚ if partner A and B contribute and of the capital respectively‚ limited partnership dictates that partner A is liable for only the initial
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Partnership Partnership is a long-term commitment to operate in business together. The people who own a partnership are called partners. They maintain one set of accounting records and share the profits and losses. Nature of Partnership 1. It is formed to make profits 2. It must obey the law as given in the Partnership Act 1890. If there is a limited partner‚ it must also comply with the Limited Partnership Act of 1907. 3. Normally there can be a minimum of two partners and a maximum of
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flow-through entities are partnerships and S corporations. Partnerships are taxed under Sub-chapter K and consist of general partnerships‚ limited partnerships‚ and limited liability companies (LLC). S corporations are taxed under Sub-chapter S. Both these types of business entities are treated as flow-through entities and are taxed accordingly. 5. What is the rationale for requiring partners to defer most gains and all losses when they contribute property to a partnership? The rationale for requiring
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talk page. (February 2009) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (June 2012) Steel Authority of India Limited SAIL Logo.svg Type State-owned enterprise public company Traded as NSE: SAIL LSE: SAUD Industry Steel Founded 1954 Headquarters New Delhi‚ India[1] Key people Chandra Shekhar Verma (Chairman) Products Steel‚ flat steel products‚ long steel
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1. Does a partnership exist? a. Is there a business? i. Yes. S1(b)‚ Hope v Barthrust City Council (1980) 144 CLR 1‚ implied that a business is a commercial activity which has repetition & continuity. The judge held that “a business is a commercial enterprise which is a going concern engaged for the purpose of profit on a continuous & repetitive basis”. b. The business must be carried on i. This again involves continuity and repetition. The case had mentioned that the restaurant would run from a leased
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