Ronald Lyday (000337108) LIT1 Task 310.1.2-01-06 Part A (Rev. A) Sole Proprietorship In a Sole Proprietorship the owner is the one responsible for the ownership and conduct of all business. All decisions, whether good or bad, are made by the owner. Income taxes are assessed as personal income for the proprietor, which is at a higher rate than other forms of income. The company can be maintained for as long as the proprietor desires to conduct business on their own.
Developing a professional contract administration plan leaves no responsibilities to question. One of the biggest issues in every corporate setting is most employees want to delegate their responsibilities to others who work alongside them. A carefully thought out plan eliminates any room for
The advantages to a sole proprietorship are, there is no startup cost, and you just simply start collecting money for exchange of services or goods. You set your own hours. You decide how much or how little you work. You also decide what contracts to enter. Disadvantages of a sole proprietorships are, you can’t transfer or sell the business.
All partners share in the decision making for the business. A partnership agreement is usually established in order to delegate the responsibilities of each partner such as who will make decisions for the business, how will profits and losses be shared, how much money and time each partner will contribute and even a plan in the event a partner chooses to terminate their share of the business. The main advantage of this entity is that it allows more expertise as well as financial support in order to make a business grow. The main disadvantage is that just like the sole proprietorship, the personal assets of each partner will not be spared if the company faces financial
A laisse-faire leader will allow his team to make their own decisions and determine their own approach to completing the task at hand. This also means that the team gets very little help or guidance from the leader. Some people prefer this style of leadership because they like to manage their own work, at their own pace, as well as being able to make their own decisions. But on the other hand, others may prefer to have guidance throughout their project to make sure they’re on the right tacks. Laissez-faire leadership can be effective in situations where group members are highly skilled, motivated, and capable of working on their own.
Chapter 13 - “Analyzing Managerial Decisions: Bagby Copy Company MBA 540 Michelle Wilson August 9, 2015 There are many advantages and disadvantages to specific vs. broad task assignment. Assigning specific tasks to workers allows the company to hire specifically based on the ability of the worker to do a very specific job. In this way efficiency can be increased as a worker should be performing the job that he is comparatively best suited to perform and nothing else. Competition amongst workers can also be increased as there is a specific metric to judge by. The cost of training a worker is also reduced as the worker does not have to be trained in every aspect of the company only what he is going to be doing.
Though Lawsons may not believe it is enough money and go elsewhere, this decision benefits the bank in both regards, as it would not lose money if Lawsons accepts or declines the loan. In regards to Lawsons, this partial increase would be easier for them to pay back and would not leave them or FWL in further debt. Lawsons is essentially a franchise for FWL, and therefore they would have to approve the loan to begin with, but once that is done, everyone can continue work as usual and work at enhancing Lawsons as a business. This decision would benefit Jackie as it is her first official action as a loan officer, and she does not want her superiors to doubt her abilities. Lawsons has potential, but is lacking in strong managerial skills, so granting a partial loan is the more fiscally responsible action for both
As a C-corporation the business, not the owner, would be held liable for any financial damages. Any accidents involving employees or customers would be the responsibility of the corporation to settle. Financially speaking incorporating is the best option because as a sole proprietorship the owner is currently paying a much higher tax rate versus the corporate tax rate. With the tax code being different for corporations there is better profit retention and security. The client also mentioned the issue of partnership and the selling of stock in order to expand the company.
The business "passes through" it's earnings or losses to its partners. All partners pay their prospective share of taxes individually. Partnerships longevity can be short due to the limited availability to funding. Additional funding to a partnership comes from the personal assets of each partner. When partners can't get along and suffer from disagreements the business suffers.
Companies will have an opportunity to choose among the best talent on the market. Without fictional unemployment people would tend to stay in their current jobs for life and create a stagnant system that could create a negative effect like subduing innovation. Fictional unemployment is also important because it matches the demand for workers with the supply from companies and helps bring equilibrium into the labor