FINANCIAL MANAGEMENT GOVAN’S CATERING SUPPLIES 1. Financial performance When looking at financial performance‚ the following observations can be made. Sales: sales volume is based on successful price competition by control of operating expenses (no sales staff employed) and quantity purchases of materials at substantial discounts. One might expect that this would be correlated to a strategy of quick sales with a focus on quantity rather than quality. However
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cost. I will have some disadvantages of being personally liable for all debts of the business and also will find it difficult to borrow money for start-up costs or expansion. Sole proprietorships are the easiest type of business structure to start. Also this has become the most common type of business structure for business owners. With a sole proprietorship the owner is the business. He or she has complete control of the business and gets to make all the decisions. Also he or she gets all the profits
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Rooftop Restaurant and Lounge would be situated on a busy intersection in Orland Park. This would be new construction: building Rooftop Restaurant and Lounge from the ground up. Rooftop Restaurant and Lounge would first have to hire a construction company to build the establishment. Once the building was complete and up to code‚ Rooftop Restaurant and Lounge would hire its staff and purchase inventory. Rooftop Restaurant and Lounge focuses on local and tourist active restaurant seekers‚ with special
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310.1.2: Organizational Forms Task A SOLE PROPRIETORSHIP: This is the most common form of business as it is owned by one person‚ so there is no distinction between the business and the owner. Liability – Because there is no distinction between the business and the owner‚ all liability falls on the owner/sole proprietor. If the business fails‚ both personal and business worth and assets are at risk as they are the same. Income Taxes – Filing for income taxes are an advantage as the owner
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Business Basics task 4 Legal and financial aspects will affect the start-up of a business in many ways. These can aid the start-up of a business‚ or they can make the business struggle. Financial aspects that will make your affect the start-up of your business negatively would be things like an increase in costs for things such as expenses e.g Electricity‚ resources for product‚ wages. If you have just started your business‚ and you are already losing money‚ there is not really any point in continuing
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Each traditional business form‚ sole proprietorships‚ corporations‚ and partnerships‚ all have their own advantages and disadvantages. Before you enter any of these types of business forms‚ you should always weigh out the advantages and disadvantages of what you are getting yourself into to see if it is worth it. A sole proprietorship is the simplest form of business organization where the owner is the business. There are many advantages to a sole proprietorship. One major advantage is that the
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Advantages of Sole Proprietor Form the advantages of forming a sole proprietorship include: Control As the sole owner of the business‚ you have complete control over all the operations‚ and you get to make all the decisions. You don’t have a board of directors‚ shareholders‚ or other owners to answer to. Tax Preparation and Filing Sole proprietorship income taxes are easy to file‚ using Schedule C and adding the income/loss from the business to your other income on your personal tax return.
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A partnership is an agreement between two or more parties working together to achieve the same or common aims/goals. The reason behind the partnership would be due to having a stake/interest in someone or something ie an individual. All stakeholders working within the partner ship must have aligned goals and work together. Each should respect each other and understand the role and benefit of what the other party or parties can provide. Trust is also an important key element involved in partnership
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Joint venture physician practices over-treat patients and reap economic rewards in the process. These types of practices are very different from the traditional group practices described in the text. Physicians partnered in traditional large group practices provide comparable services‚ usually practicing within the same specialty‚ such as Dermatology or Orthopedics. As Getzen (2010) explains‚ "One reason for physicians to work together in group practices is to obtain economies of scale from sharing
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LIT1 Task 310.1.2-01-06 Part A Sole Proprietorship: A sole proprietorship is owned by only one person. All profits and losses are the responsibility of the owner only. Liability – There is unlimited liability in a sole proprietorship. The owner is solely responsible for any debts that may occur. Income Taxes – The business files taxes as one single unit. Because profits are not shared‚ they are considered personal income to the sole proprietor. Longevity/Continuity – In a sole proprietorship
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