Creating, Financing, and Marketing a business
Partnerships have many benefits, but they also can be maintained very easily. You do not have to register with your state and pay fees, as you do to establish a corporation or a (LLC). And with a partnership, filing income tax returns is relatively easy. Unlike a regular corporation, there is no need to file separate tax returns for the corporate entity and its owners.
Another advantage of partnerships is the flexibility they offer. In partnership agreements, the partners are free to set their responsibilities and benefits as they see fit or as the needs of the business. The structure of the ...view middle of the document...
So, it would be very wise to have a good insurance policy.
Partnerships are also limited in their ability to raise money. Without loans, partnerships are often unable to get large amounts of cash (Stephanie Paul, September, 2008).
When it comes to funding a small business, there are several ways to fund it. Lots of entrepreneurs start by using personal finances like Credit Cards. His way may not be the best, So, I will discuss some other options. The first option is to get a loan from a bank. A bank institution is a good place to get an ongoing working relation with but this also has an upside and a downside. The upside is that you don’t have to give up equity and it’s available to companies that can get equity funding. Depending on what your small business is, there is also the option of grants. Grants are basically free money and investors love the leverage that grants bring. The downsize to grants is that they are very hard to get and there are specific ways to use the money. You also have equity financing, in which private investors invest in your company, usually small amounts. The upside is that it is convenient and available quickly and the downside is that it usually a one time investment.
Let’s talk about Managerial Accounting; Managerial Accounting is the branch of accounting that provides reports and analysis to managers to help them make informed business decisions. This helps with product costing because without the analysis managers would be operating in the dark as far as what the cost of products and labor. Incremental Analysis is the evaluation of the financial impact different alternatives would have in a particular decision making situation .Decisions are made to repair old equipment or buy new or whether to buy parts and components from a supplier or to make them...