This website uses cookies to ensure you have the best experience. Learn more

Types Of Business (3) Essay

2086 words - 9 pages

Types Of Business

There are many different advantages and disadvantages of different types of ownership within the business sector. Before you start you’re new or expanded business plans. You need to explore all the options available to you. Will you be a Sole Proprietor or a Corporation or everything in between? The following report will examine six different business organizations in detail.

Sole Proprietorship: is when the business is fully owned and managed by one person (others can be employed to help run the business) as the sole proprietorship only monetary income is from the business, you don't receive a paycheck. If you need money for living expenses, you take a draw. A Sole ...view middle of the document...

Other characteristics are strong work ethic, willing to do whatever it takes to get the job done, organizational skills, etc.
3. Liability, as a Sole Proprietor you are personally liable for all debts, and negligence in the business (Your personal assets and income are not protected).
4. Lack of continuity is probably the biggest disadvantage of a Sole Proprietorship, if the owner becomes disabled or dies, more than likely the business will fail and close.
5. Another disadvantage of a Sole Proprietorship is that is difficult to expand or raise capital for your business or to move to new locations or another's state. Therefore your business more than likely will be confined to your local marketing area.
General Partnership: In a partnership there are two or more persons as owners. Partners take part in the daily operations of the business. There are also two more features that each person has to agree to in order for a partnership to form; they have to share a mutual interest in the business and take part in the profits and losses. In a general partnership, all partners have unlimited liability. They are personally accountable for all debts of the firm.
When forming a partnership, it would behoove the partners to draw up a legal document outlining each partner’s responsibilities and involvement in the business, i.e., how much time and finances each person will invest in the business, how profits and losses will be handled and how much control each partner has over the business.
Advantages of a Partnership;
1. Additional funding: The presence of more than one owner means that more than one person is providing funding for the business.
2. Shared losses: Any losses are absorbed by more than one owner.
3. Ability to specialize: each partner could have different skills to help make the business more successful.
4. Taxes, general partnerships are normally a pass-through tax. The partnership is not taxed, the partners are, under distributed income guidelines. This means the partners pay taxes on the share of profits or deduct for their share losses on their personal income tax. The partners report profit and losses on their individual 1040.
Disadvantages of Partnerships;
1. Shared control: With more than one owner, the risk exists that owners can disagree about how the business should be run. This can delay the decision making process and create tension among the partners.
2. Unlimited liability: All general partners have unlimited liability. If the partnership is sued or encounters severe financial difficulty, the owners can lose more than the amount they have invested in the company.
3. Shared profits: Any profits earned by the partnership must be shared among all partners.
4. Partnerships could terminate the following reasons, death, disability or withdrawal of a partner. This is why it's so important to have partnership agreements in place to address these kinds of events. What this means in the majority of general partnerships....

Other assignments on Types Of Business (3)

Unit 5 Essay

325 words - 2 pages 1.) Choosing a database management system requires a great deal of analysis. TRUE 2.) When choosing a database management system, you should consider system compatibility and hardware requirements. TRUE 3.) Only insert and update statements are part of a database transaction. FALSE 4.) Physical design is independent of any particular database management system. FALSE 5.) A data type is a column specification that determines what

Business Structures Essay

851 words - 4 pages Business Structures FIN 571 July 20, 2015 Business Structures When forming a business, there are three basic structures to identify and understand. Sole proprietorship, partnership, and corporation comprise the basic structures. The partnership can be a general partnership or a limited liability partnership and the corporation can be three types: general, subchapter S (S corporation), and limited liability company (LLC). For a

Bkas

926 words - 4 pages , documentation techniques, infrastructure for e-business, security and control measures in computer based information system 2. Acquire knowledge and skill on internal control structure 3. Acquire knowledge of accounting software 3. LEARNING OUTCOMES Upon completion of the course, students are able to 1. Explain the AIS concept, components and functions to the organizations. (C2, A3, P2). 2

Sales And Inventory System

636 words - 3 pages of users with authority. 3. To create an inventory system that will have automatically update the counts of products. 4. To design a user-friendly interface specifically, for adding, editing and retrieving of records. 5. To create a system that generates accurate results for remaining number of stocks and computation of sales Statement of the problem The business is facing many problems in their current system. The researchers found the

Hrm Case

1188 words - 5 pages from the United States edition of Human Resource Management, 12/e Weaknesses Example: Market saturation Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd Authorized adaptation from the United States edition of Human Resource Management, 12/e Relationships Among Strategies in Multiple-Business Firms 3–6 Types of Strategies Corporate-Level Strategies Diversification Strategy Copyright © 2011 Dorling Kindersley (India

E-Marketplace, E-Mall, E-Tailing

596 words - 3 pages . Matching buyers and sellers. 2. Facilitating the exchange of information, goods, services, and payments associated with market transactions. 3. Providing an institutional infrastructure, such as a legal and regulatory framework, that enables the efficient functioning of the market. Types of Electronic Markets:- * Electronic storefront: A single or company Web site where products and services are sold. * Mechanisms necessary for

Market Analysis

1024 words - 5 pages others will be in sales, payment management and other support services. We will thus have about 30 individuals in our employment. Q6: Describe the benefit you and your proposed staff will bring to the business including expertise, track record in the business and management experience. The business already has four highly trained groomers who are experienced in the various types of grooming services. The promoters of the enterprise are

Mis 1

425 words - 2 pages . Define and contrast data, information and knowledge 11. Describe three or four types of jobs and career opportunities in information systems and in related fields 12. List and define three technical knowledge and/or skills core competencies 13. List and define four business knowledge and/or skill core competencies 14. List and define four of the systems knowledge and/or skill core competencies 15. List and define five types of

Business Information Systems In Your Career

7204 words - 29 pages relationship to globalization? 2) A business model describes how a company produces, delivers, and sells a product or service to create wealth. Answer: TRUE Diff: 1 Page Ref: 11 AACSB: Application of knowledge CASE: Comprehension Learning Objective: 2 - Why are information systems so essential for running and managing a business today? 3) Information systems consists of all the hardware and software that a firm needs to use in order to

Dddóóóóóóóóóóóóóóóó

5258 words - 22 pages the trade-offs between short-term profitability and long-term growth, and technology scope, which distinguishes between shared infrastructure and business solutions. (See “A Framework for IT Investment.”) To address both dimensions companies need to invest in four distinct types of investment: transformation, renewal, process improvement and experiments.6 Transformation As companies attempt to migrate to a more electronic business environment

Syllabus

3192 words - 13 pages Methods. Reading Read Ch. 2 of Business Research Methods. Reading Read Ch. 3 of Business Research Methods. Reading Read Ch. 4 of Business Research Methods. Participation Participate in class discussion. 9-25-12 3 Discussion Questions Respond to weekly discussion questions. 9-25-12 1 Nongraded Activities and Preparation Resource: Business Research Methods Review the “Bringing Research to Life” sections of Ch. 1 & 3 of Business

Similar Documents

Papl Essay

669 words - 3 pages : Business Research Methods, Ch. 5 EBOOK COLLECTION: Business Research Methods, Ch. 6 EBOOK COLLECTION: Business Research Methods, Ch. 11 EBOOK COLLECTION: Business Research Methods, Ch. 3 ARTICLE: Week Two Topic Searches Assessment Please see the instructor's syllabus for this week's assignments. Week 3 - Topic 1: Types of Research Design Objectives Differentiate between qualitative and quantitative methods of research. Explain commonly

Management Information System And How It Help In Business Application

281 words - 2 pages Project Management Information System Table of Contents Project Management Information System 2 Introduction 2 Types of project Management Software 3 Desktop software’s: 3 Web Based software: 4 Characteristics of Project Management Software: 5 Benefits of Using a Project Management Software 7 Things to Look for When Implementing Project Management Software 7 Application of PMIS in project management stages 11 Typical Reports in a

Blah Essay

656 words - 3 pages Week 3 Reflection Team B BIS/220 Novemember 21, 2013 Douglas Martin Week 3 Reflection BIS/220 Introduction to Computer Applications Systems is a course that describes how database are used in the work environment, explains the benefits of collaborating tools to the work environment, and compare types of electronic commerce. A database collects records or stores information that is stored in a computer in a logical manner so that

Business 210 Complete Course Essay

309 words - 2 pages BUS 210 Course Calendar |Monday |Tuesday |Wednesday |Thursday |Friday |Saturday |Sunday | |Week 1 |2/10 |2/11 |2/12 |2/13 |2/14 |2/15 |2/16 | |BUS 210 |Post Bio |DQ 1 | |DQ 2 Week 1 Knowledge Check |Business Models and Systems CheckPoint | | | |Week 2 |2/17 |2/18 |2/19 |2/20 |2/21 |2/22 |2/23 | |BUS 210 | | | |Business Organization CheckPoint Week2 Knowledge Check | | |Evolution of Business Presentation | |Week 3 |2/24 |2/25 |2/26