Like the partnerships the S-corporations basically have no federal income taxes. S-corporations owners are taxed on their portion of earnings. The popularity of S-corporations fluctuate with the income tax law. Sometimes the corporation taxes are more than the individual and vice versa. Some of the similarities to a closely held corporation is each shareholder's liability is limited to the amount of their investment.
A C Corporation is considered an entirely separate entity and those that make up the company such as officers, directors, managers, and shareholders are not personally liable for the acts of the company. This is the main advantage of a C Corporation. A disadvantage is that profits of the corporation are taxed at two different levels. One at the corporate level and then another on the dividends of the shareholders. · Liability-A C Corporation has limited liability in that it is seen as a separate entity from the owners, which in turn protects their personal assets from being taken to pay for the company’s debt or liability losses.
Public limited company (Tesco) The purpose of a public limited company is to sell goods and make profit. Also to satisfy our needs. Public limited company (Tesco) is Limited liability Company this means their personal possession won’t be taken to pay off debt. Tesco is a large business because they operate in different countries and have more than 5,000 staff members. Firstly, limited liability business shareholders are not liable for the business debt.
National business is a business which is located in the whole country. These types of business normally franchise this is means the governments allows the owner to sells their product or service. International business is a business which is located in more the one country. An example of this would be Tesco or McDonald’s because they’re both located in different countries such as America and England. Size and Scope of Business Small size and scope businesses are normally privately owned or sole traders this is because they have a small amount of employees which means they can’t afford to have more in a small shop.
The sole proprietor has the advantage of maintaining complete control over his or her business. Disadvantages: One of the greatest disadvantages to a sole proprietorship is the lack of cash flow or access to capital like loans or investors. They do not have the advantage of getting access to capital through bonds or shares and credit is based on their personal credit history. The lack of capital keeps purchase power restricted in comparison to corporations. Liabilities can be very heavy for sole proprietors depending on the nature of the business.
The NHS does not have hospitals in other countries as the service is only provided to people paying taxes in the UK. Ownership A Public Limited Company (PLC) is a company which trades its securities on the stock exchange and can be bought and sold by anyone, it also has limited liability which means that the shareholders won’t lose anymore more money than they put into the company; a Private Limited Company (LTD) also sells shares but not on the stock market, in order to get a share in a LTD you will have to be asked to buy one; an LTD also has limited liability. Other types of ownership of business is a sole-trader and a partnership; a sole-trader is owned and run by one person which will have to deal with everything for the business to run properly, one example of a sole-trader is a corner-shop. A partnership is a type of ownership where 2 – 20 people own and run the business, an example of a partnership is a local accountancy
FIN 3010 – Chapters 1-3 Homework ______________________________________________________________________________ Chapter 1: Questions: 7. What are the significant financial advantages and disadvantages of the sole proprietorship/ partnership form in comparison with the corporate form? 1 ) The profits are shared only by sole proprietor or in between the partners , while in corporate form the profits are searched with the number of shareholders that the company holds. 2) In sole proprietor and partnership the level of investments are not that large so the amount can easily be built through profits. 3) Sole proprietorships and partnerships cost less to establish while corporate forms have hugh legality that costs.
Democracy allows for free enterprise and accordingly the economic status of people may vary in a country from very rich to poor. Communism does not allow for private ownership of property . There can be marked many obvious and contrasting points in these two economic systems. In a communist system the whole planning of the economy remains in the hands of the government. Small businesses generally do not exist in a communist society because of the immense powers vested in the hands of the government.
Business Communications - Homework Task There are various types of information that are both used by and created by organisations all of which have their own purpose such as informing employees of internal activities or stakeholders of developments within the organisation. You have been placed in charge of improving communication of a large company in the city of London and have been asked to study a competitor in order to facilitate this. Using one of the companies from the list below think about the types of information that they produce why they may produce it and where they will get the information from. It is important that you look at all aspects to get a whole view on the communications the business uses and why. Companies you may wish to consider: * BP * Thorpe Park * Ford
Phenomenon called multinational corporations, business activities were confined within one country in the past have appeared riding the wave of globalization. MNC is company which regulates the activities of production, marketing, or service facilities in foreign country. Without distinction of country where the most economically advantageous to produce raw materials, production, and planned to raise profits by selling the most lucrative market in the most favorable features. Multinational Corporation pursue purely economic purposes, by moving around the people and shareholders, there is no principle of nationality, home of the country's support founded even if there is no relationship. The common feature of these multinational corporations mentioned above, at least two or more countries have sales, organization, production plants, distribution center, licensing or subsidiary businesses more than about 25-45% of total imports from the overseas market, raise global pursuing a strategy.