limited liability company (LLC) is one of many ways to formally structure a business. The best way to describe an LLC would be as a cross between a sole proprietorship/general partnership and a corporation. “The "LLC" has only been in existence for roughly 26 years and there are some definite pros and cons” (Chapo‚ 2007). Advantages of LLCs There are many benefits to forming an LLC. They are easier and less expensive to start than other forms of business‚ but not every business type is allowed to
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The Formation‚ Management and Dissolution of Business Enterprises Type of business organizations Sole Trader it is any business which is owned by one person. This person may recruit employee. Owner is personally responsible for the debts the company and he has unlimited liability. These are such people who testify specialized services such as hairdressers‚ plumbers or photographers. Partnership it is business that is owned by two or more people. These people put jointly in the business their
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A business that is carried on by a sole proprietorship is owned by one person‚ who also usually runs and manages the business. There may or may not be people working in the business these are referred to as employees of the business and the owner is the employer. The sole proprietorship receives all profits and is legally required to bear and satisfy all losses personally. The sole proprietorship is personally liable for debts of the business. So that‚ the sole proprietorship has unlimited liability
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Limited Patnerships Limited Liability Partnerships Companies Key Legislation General Law of Contract Partnership Act 1980 Limited Partnerships Act 1907 Limited Liabity Partnerships Act 2000 Companies Act 2006 Liability Unlimited Liability Each Partner jointly and severally liable Limiteed Liabiliy for limited partners and unlimted liability for general partner Limited to the amount tas they have agreed Depending on the type of company Separate Legal Personality No No No Yes YEs Taxation
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joint-stock company is where business owners raise capital by issuing stock certificates of its ownership. This means selling stock to investors that guarantee them a certain percentage of the company’s profit. This form looks good from the outside but if we were to select this form of organization and our business fails‚ then any people the business owed money to I(i.e. vendors) would be able to go after the stock holders personal wealth in order to recover the debt. A limited liability company seems
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Lesson 1 (3.0 points) 1. What is the Exit stage of a business? (0.5 points) The Exit stage of a business is when a business owner gets out of their day-to-day commitment to running the company. 2. What does the human resources department of a company do? (0.5 points) The human resources (HR) department handles things like employee hiring‚ firing‚ insurance and retirement benefits‚ payroll‚ and employee complaints. 3. What is information utility? (0.5 points) Information utility is the value added
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Accounting Standards Board is the independent‚ accounting standard-setting body of the IFRS Foundation.[1] It is responsible for developing and promoting the use and application of these standards. Trading Profit and Loss Account: A company keeps different types of financial records in order to monitor their performance and ensure that their taxes are paid. These will include cash flow statements‚ profit and loss accounts and a balance sheet. A trading‚ profit and loss account shows the firm’s
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of the corporate form of organization is that it avoids double taxation. d. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights‚ i.e.‚ “one person‚ one vote.” e. Corporations of all types are subject to the corporate income tax. 2. Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy? a. Households start saving a larger percentage of their income. b. The economy
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SEPARATE BUSINESSES‚ ONE A PROFIT ORGANISATION AND THE OTHER A NON PROFIT ORGANISATION DESCRIBE THE TYPES OF BUSINESSES‚ PURPOSE AND OWNERSHIP. INCLUDE IN THE DESCRIPTION‚ THE LIABILITY OF THAT BUSINESS. BUSINESS 1: RIVER ISLAND BUSINESS 2: OXFAM RIVER ISLAND: PROFIT ORGANISATION ‘With over 60 years of fashion retailing experience‚ River Island is one of the most successful companies on the High Street. River Island has nearly 300 stores across the UK‚ Ireland and internationally throughout
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STUDY OF NIGERIAN BREWERIES PLC AND PABOD BEWERIES LTD. INTRODUCTION: There are two types of companies which are generally identified when classifying ownerships. These are known as Private and Public companies. PRIVATE COMPANIES- A private company is a term used to describe a privately held limited partnership that does not report financial information to the public. It is a business company owned by either non-governmental organizations or by a relatively small number of shareholders
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