goal of profit maximization ignores the timing of profit. ANSWER: True DIFFICULTY: Moderate KEYWORDS: goal of firm‚ profit maximization‚ timing of cash flows 9. The sole proprietorship can be described as the absence of any legal business structure. ANSWER: True DIFFICULTY: Moderate KEYWORDS: sole proprietorship 10. In a general partnership‚ all partners have unlimited liability for the actions of any one partner when that partner is conducting business for the firm. ANSWER: True
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cons for each. Sole Proprietorship The most prevalent organizational type is the sole proprietorship. Sole proprietorship is usually found among the smaller organizations. It involves one person and in many cases the person and the business are synonymous (Barringer & Ireland‚ 2010). The sole proprietorship is the low cost alternative in both start up and in maintaining costs. They usually only require a business permit in order to operate. However‚ the sole proprietorship opens the owner
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BSAc-I‚ Mgt 101-A November 24‚ 2014 Sole Proprietorship A Sole Proprietorship is a business with one owner who operates the business on his or her own or employ employees. It is the simplest and the most numerous form of business organization in the United States‚ however it is dangerous as the sole proprietor has total and unlimited liability. Self contractor is one example of a sole proprietorship. The advantage of organizing your business as a sole proprietorship is that the process is simple and
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capital budgeting. capital structure. 6. A business owned by a single individual is called a: A. B. C. D. E. corporation. sole proprietorship. general partnership. limited partnership. limited liability company. 7. A business formed by two or more individuals who each have unlimited liability for business debts is called a: A. B. C. D. E. corporation. sole proprietorship. general partnership. limited partnership. limited liability company. 8. The division of profits and losses among the members
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the firm? | Access to Capital | Taxation | Sole Proprietorship | There is only one owner of a Sole Proprietorship. | The owner of a sole proprietorship is completely liable for paying any and all business debts. This also includes any losses‚ taxes‚ and lawsuits. If the firm cannot pay the debts incurred‚ the owner must use personal property or any other stock or such from another business. | Technically yes the owner manages the sole proprietorship. This does not mean that he/she cannot hire
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J. Mandelkorn Student: Wang Fang Lei Sole Proprietorships? Partnerships? LLC? S or C Corporations? Which One is the Best Solution? A few years ago‚ my husband sets up his own computer company‚ focus on providing computer services to customer. Before he starts doing the business‚ we went to a CPA firm to get a license to legally set up the new company. After collecting some basic information of our business‚ the CPA‚ then choose a Sole Proprietorships business form for us. At that time‚ we don’t
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and organizational structures that are currently operating. Each structure possesses number of advantages and disadvantages that must be considered‚ whether in a sole proprietorship or corporation. The purpose of this short essay is to identify several types of business structures and list the pros and cons of each. Sole Proprietorship is a company owned and sometimes operated by a single individual. These company types can range from small “mom and pop” retail stores to inventors seeking to sell
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is about an inventor who is trying to start up their own business but does not have the financial stability nor the management skills to keep the business afloat. They also need to decide which type of ownership will best fit their business: Sole Proprietorship‚ Partnership or Corporation. Unit 1: Individual Project Becoming a successful inventor is no easy task. It takes hard work coming up with and designing the product one wishes to sell. Then there are the questions ‘Could this product be
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and they are not controlled by the state or the government. There are many types of business entities defined in the private sector and authorized by the legal systems of various countries. These legal forms of business include; • Sole Proprietorship • Partnership (General Partnership‚ Limited Partnership and Joint Venture) • Corporation (C Corporation and S Corporation) • Limited Liability Company (Private and Public) These legal forms have been derived according to their Source
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business structures are the sole proprietorship structure‚ the partnership structure‚ the corporation structure‚ the S corporation structure‚ and the limited liability company structure. Each structure has advantages and disadvantages and possible tax consequences. The sole proprietorship structure is individually owned and operated. The sole proprietorship structure is the least regulated and is the easiest type of business to start. The advantages of the sole proprietorship structure are easy and
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