of ownership and type of business will be a sole proprietorship. This is done so as to keep the terms and conditions of the business simple and clear‚ which will eventually reflect in the overall model of the business. Moreover‚ this type of business structure is chosen to facilitate the authority of decision making required to bring the further improvements in the business. Also‚ it is an evident fact that the businesses in the form of sole proprietorship are easier to form as compared to the other
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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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ABFA 1013 INTRODUCTION TO ACCOUNTING DIPLOMA IN BUSINESS (ACCOUNTING) YEAR 1 – SEMESTER 1 (2014/2015) COURSEWORK 1 YONG KIT YEE 14WBD00875 KONG LIT PEI 14WBD01265 NAH SEE PENG 14WBD01318 TEE BEE SWAN 14WBD06042 DAY : TIME : DATE OF SUBMISSION : Table of Content Plagiarism Statement Declaration Form………………………………………………… Safe Assign Report……………………………………………………………………… Marking Scheme………………………………………………………………………… 1. Summary……………………………………………………………………………
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entity concept applies to all forms of businesses – single proprietorship‚ a partnership‚ and a corporation. A single (sole) proprietorship is business owned by an individual and often managed by that same individual. Single proprietors include physicians‚ lawyers‚ electricians‚ and other people who are ‘in business for themselves’. In a single proprietorship‚ the owner is responsible for all debts of the business. Operating as a proprietorship is the easiest way to get started in a business activity
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amount of revenue. Jane is in charge of the marketing‚ Joe orders the supplies‚ and Daphne is in charge of accounting. Sole Proprietorship means that‚ a business owned by only one person. The person would not have any partners‚ nor would the business be “public”. The owner is 100% liable if the business would fail. A lawyer would consider opening a law firm with sole proprietorship. The lawyer would be accountable for all financial parts connected with the law firm. If the lawyer would loose the firm
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Sole Proprietorship Liability- Owner is liable for 100% of debts‚ taxes and liabilities. Income Taxes- Taxed like regular income tax; owner claims it at year end and pays income tax on all earnings. Longevity/Continuity- Company will likely die off if owner does. The company‚ being one and the same as the owner‚ cannot continue without measures being taken to pass on Control- Owner has complete control over all decisions made; complete autonomy Profit Retention- All profit belongs
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1 SOLE PROPRIETORSHIP: The owner and the business are considered one. The owner takes all the risk and receives all the profits. It is easy and inexpensive to start up a sole proprietorship however a sole owner has trouble raising capital which could limit growth. • LIABILITY –If the business fails the owner is financially responsible and my lose everything. • INCOME TAXES – The proprietor and the business are taxed together. • LONGEVITY/CONTINUITY – The business dies with the sole proprietor
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Some of these business organizations include; sole proprietors‚ corporations‚ and partnerships. With choosing which organization to go with one must consider consequences in lieu of legal issues‚ taxes‚ financial statements‚ and accounting practices. A new business venture will be summarized along with the business organization type and related consequences regarding different business types. Types of legal business entities Sole Proprietorship This type of organization is one of the most
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scenarios will be formed to demonstrate the different forms of business such as Sole Proprietorship‚ Partnership‚ Limited Liability Partnership‚ Limited Liability Company‚ S Corporation‚ Franchise and Corporate Form. Sole proprietorship is defined by an individual or a married couple who is responsible for the day-to-day operation of the business. As the easiest way to form and run a business‚ sole proprietorship allows the business owner(s) to have ownership of all the business assets and profits
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Principles of Finance HW# 1 Question# 1-1: If you bought a share of stock‚ what would you expect to receive‚ when would you expect to receive it‚ and would you be certain that your expectations would be met? Answer: If I bought a share of stock‚ I would expect to receive a share of the company. Meaning either to vote in the company or receive paid dividends‚ depending on if I purchased common or preferred stock. I would expect to receive my share instantly. I would not be certain that my expectations
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