to be taxed like a partnership or sole proprietorship” (Lau‚ 2012‚ p. 367). As far as income taxes‚ their owners don’t bring in the amount of revenue as larger corporations do and this will allow them not to be double tax so they are allowed to report their profits or losses on their personal income tax returns. “A LLC is not a separate tax entity like a corporation; instead‚ it is what the IRS call a “pass-through entity‚” like a partnership or sole proprietorship. All the profits and losses of LLC
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TASK THREE BALANCE SHEET The accounting balance sheet is one of the major financial statements used by accountants and business owners. (The other major financial statements are the income statement‚ statement of cash flows‚ and statement of stockholders’ equity) The balance sheet is also referred to as the statement of financial position. The balance sheet presents a company’s financial position at the end of a specified date. Some describe the balance sheet as a "snapshot" of the company’s
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the company. “What are the three basic forms of business ownership? What are the advantages and disadvantages to each” (Cornett‚ Adair‚ &Nofsinger‚ 2014‚ p. 21)? The three basic forms of business ownership are sole proprietorship‚ partnership and corporation. A sole proprietorship is where the business is run by a single person. The advantages of this form of ownership are as follows: • This is the easiest form of business to start • This is affected least by regulations • There is no question
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when he/she start a new business. There are many different ways of flying kite and each way of it can be compared with different form of business organisation. Some people have the habit‚ skill and talent to fly the kite on their own like Sole Proprietorship form of business where whole business is handled by a single person similarly some have the habit to take the help of the others to fly a single kite like Partnership form of business where each partner take the help of the other to take important
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terms of organizational costs‚ which of the following sequences is correct‚ moving from lowest to highest cost? a. General partnership‚ sole proprietorship‚ limited partnership‚ corporation b. Sole proprietorship‚ general partnership‚ limited partnership‚ corporation c. Corporation‚ limited partnership‚ general partnership‚ sole proprietorship d. Sole proprietorship‚ general partnership‚ corporation‚ limited partnership 2. The true owners of the corporation are the a. holders of debt issues of
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LIT1: Task 310.1.2-01-06 Task A Sole proprietorship 1. Liability * An owner has unlimited liability both personally and as the company owner. Liability is a disadvantage in a sole proprietorship. 2. Income taxes * The owner is responsible for filing taxes and is allowed to file taxes as part of their personal income taxes. 3. Longevity * This depends completely on the owner and there continued ability to operate the business. The operation of the business can be significantly
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Introduction to Business (Question for 1st semester midterm exam.) # What is business? Ans : An organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. Businesses can be privately owned‚ not-for-profit or state-owned. An example of a corporate business is Grameen Phone‚ while an Azad Products is a private
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University of Phoenix FIN 571 Aljenette Brown Professor Elliott November 9‚ 2014 Business Structure A business is the fruit of a seed that a sole person or a group of people bears. The decision of what type of business to open will greatly affect the company in the long run. Many options exist for the person(s) such as opening a sole proprietorship‚ corporation‚ Limited Liability Corporations‚ partnerships‚ etc. Limited Liability Corporations and partnerships are very similar company types‚ but
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Small businesses have been considered the mainstay in countries around the world. In many European countries for example‚ the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership‚ independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses‚ however‚ close or fail
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contracts have an implication on costs and an ability to maintain extra employees hired in the business. The obligations also pose a threat to the type of ownership that the owner has maintained over the years. The business has mainly been a sole proprietorship. However‚ if the business wants to expand by taking on the bigger business‚ it has to rethink the type of ownership to make it a better company. The aim of the paper will be to assess the law governing the contracts‚ analyze the conditions necessary
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