Question
$5.00 Principles of Business
- From Business: General-Business , Business: General-Business
- Closed, but you can still post tutorials
- Due on Jul. 11, 2009
- Asked on Jul. 11, 2009 at 10:14:39AM
Q:
List and describe three advantages and three disadvantages of the following types of business ownership:
Sole Proprietorship
List and describe three advantages and three disadvantages of sole proprietorships.
Partnership
List and describe three advantages and three disadvantages of partnerships.
Corporations
List and describe three advantages and three disadvantages of corporations.
Sole Proprietorship
List and describe three advantages and three disadvantages of sole proprietorships.
Partnership
List and describe three advantages and three disadvantages of partnerships.
Corporations
List and describe three advantages and three disadvantages of corporations.
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the answer
- This tutorial was purchased 1 time and rated C- by students like you.
- Posted on Jul. 11, 2009 at 10:38:13AM
A:
Preview: ... e business has no continuity: if the owner dies, the enterprise dissolves.<br> * Auditing financial statements is unnecessary.<br> * A balance sheet, however, may be required by a loan-granting bank.<br> * The owner is the legal entity; he, therefore, is the one responsible for income tax, paid in his personal capacity.<br><br>[edit] Advantages<br><br> * The sole proprietorship is easily established, there being no legal formalities.<br> * Owner takes all profits.<br> * There are no overhead expenses required in the establishment.<br> * It allows for quick and free decision-making.<br> * The owner may gain experience of all aspects of the business world.<br> * If the owner puts all of his/her abilities into the enterprise, all of them may be utilised to his/her benefit.<br> * Ownership easily transferred.<br> * Close ties can develop between the owner and his/her customers and employees, and this generally leads to faithfulness.<br> * A large number of sole traders in one area leads to good competition, which will benefit both owners and consumers.<br> * Such a business can adapt comparatively easily to changing conditions.<br><br>[edit] Disadvantages<br><br> * The owner has unlimited liability because his/her personal assets may be sold in order to pay for the debts of the business.<br> * There is no continuity.<br> * Because there are a limited number of assets to give as security, it is difficult to obtain a loan.<br> * It is not easy to acquire good, qualified staff, as there is little to offer them in the way of promotion.<br> * Salaries paid to workers are normally lower than the sal ...
The full tutorial is about 1510 words long .
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solution
- This tutorial was purchased 1 time and rated No Rating by students like you.
- Posted on Jul. 11, 2009 at 11:17:57AM
A:
Preview: ... r can transfer the business only by the sale of business assets. This means it is more difficult to have someone buy into the business, and there are potential tax consequences of converting a sole proprietorship to a corporation or a Limited Liability Company rather than starting out with a durable form of business entity.<br><br><br>Partnership<br><br>In a Business Partnership,, two or more people share ownership of a single business. Like sole proprietorships, the laws do not distinguish between the business and its owners. The Partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed;. Its difficult to think about a "break-up" when the business is just getting started, but many partnerships split up at crisis times and unless there is a defined process, there will be problems. They also must decide up front how much time and capital each will contribute.<br><br>Advantages of a Partnership<br><br> * Partnerships are relatively easy to establish; however time should be invested in developing the partnership agreement.<br> * With more than one owner, the ability to raise funds may be increased.<br> * The profits from the bu ...
The full tutorial is about 1179 words long .
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Forms of Organization
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- Posted on Jul 11, 2009 at 11:03:46PM
A:
Preview: ... with the corporation. A corporation can be formed at either the federal or provincial level.<br><br>A corporation is identified by the terms "Limited", "Ltd.", "Incorporated", "Inc.", "Corporation", or "Corp.". Whatever the term, it must appear with the corporate name on all documents, stationery, and so on, as it appears on the incorporation document.<br>3. Corporation<br>It is an artificial person created under law. Corporations can only act through their employees and agents. For example, although we commonly consider that a bank makes a loan, in actuality it is the bank employees who gather information, check out security, authorize the loan and transfer money to the customer's account.<br>Advantages<br>• Limited liability<br>• Specialized management<br>• ownership is transferable<br>• continuous existence<br>• separate legal entity<br>• easier to raise capital<br><br>Disadvantages<br>• closely regulated<br>• most expensive form to organize<br>• charter restrictions<br>• extensive record keeping necessary ...
The full tutorial is about 680 words long .