If the business has debt that is unpaid then the creditors could go after the individual. Same is also said if the owner has debts separate from the business debt the creditors could go after the business. As a sole proprietorship business, liability insurance could be purchased to deter this. • Income Taxes- As a sole proprietorship business, a person can avoid the higher taxes that are associated with corporations. A sole proprietorship business can also deduct business expenses just like any other business.
A related issue is for management to decide when the company is straying too far from the core and get back the focus ("Managing diversification,"). Contrary to general perception, few businesses can be called completely focused. It is useful to understand what diversification is and lay down a nomenclature before we proceed further. How can we measure diversification? Rumelt has classified firms into four business groups: -Single business firm: Such a firm generates 95% or more of its revenues from one business.
Is he solely to blame for trying to avoid paying his share of taxes or should the company that hired him also share some of the responsibility? Should a lawyer take or not take his case? Hypothetical speaking, would I take this case if I were a lawyer? I believe I would take it, and to the best of my ability, help my client collect his hard earned money. The government can decide later if it wants to prosecute this person for tax avoidance.
This growth is often accompanied by an increase in the amount of auditing as compared to other services (Whittington, p 20). Public accounting firms with offices in most major cities in the United States are called national firms. These firms may operate internationally as well, either with their own offices or through affiliations with firms in other countries (Whittington, p 20). Often in the news are the large international public accounting firms. Since only a very large public accounting firm has sufficient staff and resources to audit a giant corporation, these firms audit nearly all of the largest American corporations.
It seams to be that corporations tend to take the easy route by claiming for bankruptcies leaving many creditors with losses. Although we cannot blame such corporates, in today’s time this is known as one of the hardest time to search for jobs and stay alive as a business. Looking at it form the economic view bankruptcies are not the best thing to do, especially in today’s economic many of these corporates and small businesses help contribute to our economy. Many of these bankruptcies occur due to government decisions such as drastic minimum wage increases from $11.45 to $14.00 and $15.00 by
| What is the ownership? | Advantages | Disadvantages | Sole trader | A business owned by one person. This owner may employ other staff to work for them. | | | Plc | | * There is indebtedness for the shareholders. * The business has separate legal entity.
What is franchising? (0.5 points) Franchising is a way of turning a company into a parent company with smaller retail outlets owned by independent operators. 5. What can happen to a business owner who has personal liability for their company? (0.5 points) A business owner who has personal liability for a company can be held personally accountable for the financial debts and illegal actions of the company.
WIRETIME, Inc. has interfered with an existing contractual relationship that Janet has with BUGusa, Inc. when they offered Janet a job with their company. This means that WIRETIME, Inc. can go after BUGusa, Inc. for damages because of losing Janet with their company. Since BUGusa, Inc. has specific knowledge of the contract that was broken, WIRETIME, Inc. actively interfered with the contract that was broken, and WIRETIME, Inc. caused losses to BUGusa, Inc. there definitely has been a tort committed. Scenario: WIRETIME, Inc. (Steve and Walter) Discuss any liability BUGusa, Inc., may have for Walter’s actions. The liabilities BUGusa, Inc. may have with Walter’s actions are intentional tort of employee and negligence of employee.
A Sole Trader is a type of business, but in this case it is slight different than any other out there, this one means being the owner of its own negotiations, investments, profits, but the sole traders can also have some employees (2-3) NO MORE THAN IT .This is one of the properties as an option as a dealer to choose among other types of businesses, but especially above everything there are advantages and disadvantages in being the owner of its own negotiations. Surprisingly it can be good and bad too. However a Sole Trader is good for an opening beginning of a business because you deal with your own decisions, organizations and you also gain profit (but you need to have some experience of it, or any knowledge about what you’re being involved in which is quite important to know). If being a Sole Trader you have to control yourself over the businesses and its profits, for it you will need a high responsibility in your life and principal in your business because you’re leading with serious negotiations. The owner of a Sole Trader can decide the way in which the business is to be conducted and has the flexibility to restructure or dissolve the business whenever it suits.
Under the idea of limited liability the owners of the organization under ordinary circumstances, are not answerable or in charge of the commitments of the organization in this manner owners shareholders liable just for the amount of their unpaid shares and not the commitments of the organization. The idea of separate legal personality was strongly found by House of Lords in the major case Solomon v Solomon and co.Ltd . (Idzwan, 2009) The case strongly found that upon incorporation, another and separate artificial entity starts to be. At law, a partnership is