projects with lower expected returns. Stockholders are generally more willing than bondholders to have managers invest in risky projects with high potential returns as opposed to safer projects with lower expected returns. Relative to sole proprietorships‚ corporations generally face fewer regulations‚ and this makes it easier for corporations to raise capital. 2 points Question 2 1. Which of the following is a primary market transaction? Answer You sell 200 shares of IBM stock
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of the business for yourself. An overview of the four basic legal forms of organization: Sole Proprietorship; Partnerships; Corporations and Limited Liability Company follows. Sole Proprietorship The vast majority of small businesses start out as sole proprietorships. These firms are owned by one person‚ usually the individual who has day-to-day responsibility for running the business. Sole proprietorships own all the assets of the business and the profits generated by it. They also assume complete
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Introduction The McGee Cake Company has been in business since early 2005. The company is a sole proprietorship. They produce a variety of full line cakes and other cake including cheesecake‚ lemon pound cake‚ and double-iced‚ double-chocolate cake. In the past several years‚ the company has experienced sales increases due to features in magazines and this led to the company receiving orders from all over the world. Doc and Lyn McGee both had regular jobs and formed the company mainly due to outside
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It is generally less expensive to form a corporation than a proprietorship because‚ with a proprietorship‚ extensive legal documents are required. 4. If a partnership goes bankrupt‚ each partner is exposed to liabilities only up to the amount of his or her investment in the business. 5. Corporations face fewer regulations than sole proprietorships. 3. Which of the following statements is CORRECT? Student Response 1. Managers who face
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your business from different types of business structures such as sole proprietorship‚ partnership and corporation. This week you will see a brief explanation of each as well as advantages and disadvantage of each of the business structures. Personal Business Structure Sole proprietorships are the simplest of all legal structures but they also lack many of the legal and financial protections of other business. The advantages of a sole proprietor are that owners not pay any taxes that are separate
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business such as sole proprietorship‚ partnership‚ limited liability partnership‚ Limited Liability Company‚ S corporation‚ franchise‚ and corporate form‚ the scenarios of each form of business is listed below. In addition‚ the scenarios will allow each individual to further understand the worth of the individual business forms. Sole proprietorship is the most common form of business‚ instating this proprietorships are operated and owned by one person. The reason proprietorship is so common is
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This paper will also justify why the corresponding business form is preferred. The forms that will be discussed are: sole proprietorship‚ partner‚ limited liability partnership‚ Limited Liability Company‚ S corporation‚ franchise‚ and corporate form. Sole Proprietorship A Sole Proprietor is someone who owns a business by himself or herself. The sole proprietorship is the oldest‚ most common‚ and simplest form of business. In this organization‚ the business is owned and operated by
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Flores Checkpoint: Business Organization A sole proprietorship is a business that is owned by one person only. That one person is the sole owner and makes all decisions on their own. Most sole proprietorships are small business likes restaurants‚ markets‚ and liquor stores. The owner must have knowledgeable business experience or else his business will not be profitable. Most of this shops end up closing up after a couple of years because the sole owner must take in all the losses. A partnership
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they chose and the rationale for doing so. Four Types of Business Organization There are four basic types of business organization these are sole proprietorship‚ partnership‚ C Corporation‚ and S Corporation. Each has advantages and disadvantages that can help a new or potential business owner decide what type of business to open. A sole proprietorship is an excellent concept for a small business. Income that the company makes goes either back into the company or into the owner’s pocket. This
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University of Phoenix Material Business Forms Worksheet There are seven forms of business: sole proprietorship‚ partnership‚ limited liability partnership‚ limited liability company (including the single member LLC)‚ S Corporation‚ Franchise‚ and Corporation. 1. Research and provide three advantages and three disadvantages for each business form. 2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to
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