responsible without protection. Also‚ sole proprietorships can only have one owner so you can’t bring others into the business. Likewise‚ they are unable to pass the business on to another individual. Tax planning can also be difficult for the individual since all income and debts for the company are also those of the individual. Overall‚ it is very dangerous to do business as a sole proprietorship due to the liability of the owner. 1. Costs: Almost no creation cost since there is nothing to create.
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1914‚ a colt named Joey (who narrates this tale) is sold to a drunken farmer. The farmer’s 15-year-old son‚ Albert‚ is thrilled. He names and cares for Joey and protects the animal from the farmer’s drunken rages. When the family begins to feel the financial impact of war‚ Albert’s father secretly sells Joey to an army officer named Captain Nicholls. Albert finds out and begs the captain to let him join the army. Albert is too young‚ but Nicholls promises to take good care of Joey for him. True to
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run a business any way they see fit with few state/federal regulations and limited legal formalities. The owner of a sole proprietorship assumes considerable risks by without liability protection and therefore is held personally liable for any judgments against the company and is susceptible to loss of business assets‚ personal property and real estate. Liability: The business and the owner are considered one entity. A sole proprietor will be held personally responsible for any debts‚ profit‚ or
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service to the people and less emphasis is made on profit making. Public cooperation is the widely known type of public sector business entity. The non-profit sector is derived with organizations that do not distribute their surplus funds to owners or shareholders‚ but instead use them to help pursue their goals. Examples include charitable organizations‚ trade unions‚ and public arts organizations. In private sector‚ businesses are financed and controlled by individuals or private institutions
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integrated circuits (ASICs) for industrial customers. The ASIC’s design combines analog and digital‚ or mixed-signal‚ technology. In addition to Tom and Jessica‚ Nolan Pittman‚ who provided capital for the company‚ is the third primary owner. Each owns 25 percent of the 1 million shares outstanding. The company has several other individuals‚ including current employees‚ who own the remaining shares. Recently‚ the company designed a new computer motherboard. The company’s design is both more efficient
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ACCOUNTING FOR PARTNERSHIPS AND LIMITED LIABILITY COMPANIES DISCUSSION QUESTIONS 1. a. Proprietorship: Ease of formation and nontaxable entity. b. Partnership: Expanded owner expertise and capital‚ nontaxable entity‚ and moderate complexity of formation. c. Limited liability company: Limited liability to owners‚ expanded access to capital‚ nontaxable entity‚ and moderate complexity of formation. 2. The disadvantages of a partnership are that its life is limited‚ each partner has unlimited
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this is not the kind of plow horse needed in order to plow this land and also the amount of money he spent in order to get him. Albert decides he is going to train the horse and plow the stone filled field; he then names the horse Joey. Albert begins spending time with Joey trying to train
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Chapter 2: Foundations of Quality Management TRUE/FALSE 1. Deming laid out a “quality improvement program” for companies such as Ford‚ GM‚ and Procter & Gamble‚ when invited to work with them to improve their quality. ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic TOP: A-Head: The Deming Philosophy KEY: Bloom’s: Knowledge 2. Unlike other management gurus and consultants‚ Deming defined and described quality precisely. ANS: F DIF: Difficulty: Easy NAT: BUSPROG: Analytic TOP: A-Head:
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Income: from whatever sources derived Sec. 702(a)(8)- owners of partner and S corp – items subject to ord income treatment are lumped ‘S’-Corporation vs. Sole Proprietorships comparison: Note: 1 GI‚ Prop G/L‚ Prop Non-Recog‚ Sale and called 702 Income or loss. Recognized even if no cash is distributed. Accordingly‚ generally not (a) BOTH have single taxation; ‘S’ over Prop-(b)Liability shield except for personal profession of Business & Capital
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making the depression go worldwide. The U.S. had a weak economy. There was an inability of the political and financial institutions to cope with the downward spiral that had started in the late twenties. Even after political intervention fifteen percent of the work force were unemployed. The biggest cause of the Great Depression was the 1929 Stock Market Crash. On October 29‚ 1929 stock market prices dropped dramatically and continued to drop for the next three years. “Stock prices in the United
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