BUSINESS ORGANIZATION Tutor Marked Assignment (TMA) Course Code : ECO-01 Assignment Code :ECO-01/TMA/2012-13 Total Marks: 100 Attempt all the questions 1. What are the essential requisites of an ideal form of business organization? Explain the criteria for the selection of the form of organization. (20) Solution:
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Outline KNOWLEDGE ON THE STEPS IN MAKING FINANCIAL STATEMENTS OF A SOLE PROPRIETORSHIP FORM OF BUSINESS: DOES IT MATTER? Thesis Statement: The knowledge on the steps in making financial statements greatly matters to the success of a sole proprietorship form of business. I. Introduction: Definition of sole proprietorship‚ forming a sole proprietorship‚ and thesis statement II. Financial statements of a sole proprietorship business A. Elements of financial statements 1. 4. Revenue
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liability one wish to assume. It is with this notion that I evaluated the four forms of business organization and hence made a choice that best suit my business aspiration. Below is an analysis of the various forms of business. Sole Proprietorship This is
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Chapter 1. Legal forms of business organization A. Sole proprietorship: A business owned by a single person and which has a minimum amount of legal structure. 1. Advantages a. Easily established with few complications b. Minimal organizational costs c. Does not have to share profits or control with others 2. Disadvantages a. Unlimited liability for the owner b. Owner must absorb all losses c. Equity capital limited to the owner’s personal investment d. Business terminates immediately
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The main strategic aim and objective for the nearest period is a dynamic development of the Bank and achievement of a qualitatively new level with the standards of the Basel Committee on Banking Supervision. The development strategy of the Bank is based on the components‚ which together will ensure strengthen of the financial and economic situation of the Bank and the preservation of its credibility with its customers. Main strategic aims of Joint Stock Commercial Bank «APABANK» (Closed Joint Stock
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you think that is so? Which form is dominant in terms of total profits? What major advantages of this form of business organization gave rise to its dominance? The three legal forms of business organizations are: sole proprietorship‚ partnership‚ and corporation. Proprietorships are the most prevalent. They are easy to start (relatively low cost)‚ often don’t require a large customer base to be profitable‚ and provide maximum freedom for the proprietor to do what she/he thinks best. Corporations
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COMPARISON OF THE FORMS OF BUSINESS ORGANISATIONS Definition Sole-Proprietorship A business owned by one person Partnership An association of two or more persons carrying on business in common with a view to profit Limited Partnership (LP) A partnership consisting of two or more persons‚ with at least one general partner and one limited partner Limited Liability Partnership (LLP) A partnership where the individual partner’s own liability is generally limited Company
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example‚ accounting companies may operate as an LLC or an LLP‚ but cannot operate as a corporation. The LLC is not considered a form of business for tax purposes‚ so a company formed as an LLC must file as a corporation‚ a partnership‚ or a sole proprietorship. In
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Answer: • Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business. • Partnership: A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of the debts incurred by the partnership. There are
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LAW AND CONTRACTS 1.Eagle Stores‚ Inc. borrows $5‚000 each from EZ Loan Corporation‚ First National Bank‚ and Great Products Corporation. Eagle uses its "present inventory and any thereafter acquired" to secure the loans from EZ Loan and First National. EZ Loan perfects its interest on April 1‚ followed by First National on April 5. Eagle buys new inventory on April 10 from Great Products and signs a security agreement‚ giving Great Products a purchase-money security interest (PMSI) in the new
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