say in the businesses‚like operational standards such as employees and management. As well a Co-Owner would expect a larger share of the profits then a stock holder in exchange for the aid in investments and the risk involved. Sole Proprietorship Sole Proprietorship mean I and I alone commit to raising the money in any way
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Organizational Forms Sole proprietorship is statistically the most common business form for in the United State. The business is unincorporated owned and operated by one individual. An advantage of sole proprietorship is the business can be simple and inexpensive to start. A Disadvantage of sole proprietorship is being the only thinker for ideas for decision making‚ advertising‚ etc. 1. Liability- There is an unlimited amount of liability because nothing separates you from the business legally
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particular rules about partnerships lead to the partnership advantages and disadvantages. Partnerships Defined and Explained A partnership is an agreement between two or more people to finance and operate a business. Partnerships‚ unlike sole proprietorships‚ are entities legally separate from the partners themselves. In a general partnership‚ however‚ profits and losses flow through to the partners’ tax returns. Each general partner has equal responsibility and authority to run the business
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today can expect to earn a yield to maturity of 6.875 percent. What should the company’s bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.) partnership limited liability partnership sole proprietorship corporation 6 The break-even point is where: total sales equal total fixed costs. total variable costs equal total fixed costs. contribution margin equals total fixed costs. total sales equal total variable
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In a joint-stock company an entrepreneur raises capital by issuing stock certificates of its ownership. This involves selling shares of the stock to investors that guarantee them the right to a certain percentage of the company’s profits. For example‚ suppose John holds shares of Mike’s Auto Repair Shop‚ which is a joint stock company. These shares give John a percentage of the vote on Mike’s management decisions‚ board elections‚ etc. The shares also give John unlimited responsibility for Mike’s
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ENTER MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1. Which of the following could explain why a business might choose to organize as a corporation rather than as a sole proprietorship or a
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Lecture: 01 13.01.15 Introduction to business A business is any organization that tries for profit by providing goods and services that meet customer needs. It deals with exchange of products and services in exchange of money. Business is an integrated process of exchanging values between an organization and its customers. Business involves the exchange of goods‚ services or money for mutual benefit. How people form the core of a business? The human element is the core of a business. Business needs
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Tutorial 2 1. Nor Luc is a Malaysian and has a sole proprietorship in Singapore in the form of a retail shop. The shop is rented. He has a car registered in his name and he uses it for both business and private purposes. He also owns an expensive Rolex watch. He lives in a rented HDB house. He also has $1000 in his local bank account‚ which is in his name. Of late his business has not been doing well and he has run into huge debts. The total debts of the business amount to $170000. (a) Advice
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Quiz 1- Spring 2013 Group 1 1. Which of the following concerning the relationship between risk and return is correct? A. Investors do not need to be compensated for taking on risk. B. Investors generally demand higher return for lower risk investments. C. Safer investments tend to have lower returns. D. Higher risk investments provide lower returns. E. Risk and return are not related. 2. Which of the following concerning the relationship between risk and return is correct? A. Risk
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BUS C170- Small Business Finance Web Search #1 1. What is finance? Finance is the management of banks for example the interest rates on a particular loan. It includes the management of investments such as the distribution of dividends. Finance also includes but is not limited to‚ the management of money for example the inflation and deflation of currency. Information used from: http://education.yahoo.com/reference/dictionary/entry/finance 2. What is a market? Name five types of markets
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