| LIT 1 Task 310.1.2-01-06| By: Bryan Luttman| | 12/01/2012| LIT 1 Task 1 Part A Sole Proprietorship - It is a business that identifies itself with the owners name or a fictitious name. It also names the owner responsible for its debts. A sole proprietorship is not a legal entity and is the simplest form of under which a business can operate. The sole proprietorship is the easiest and most popular form of business for small business owners. The owner does not need to register his or her name and get a local license in order to do business, unless it is under a fictitious name.
A sole proprietorship is an unincorporated business owned by one person. The owner of a sole proprietorship is known as a sole proprietor. Sole proprietorship is easier and less expensive to start than corporations. It can be started without anything more formal than a decision or a handshake and you can conduct business under your own name or under a trade name. In this example, Owen will be the only owner and since he wants to have employees under this business form he is allowed to hire employees whereas if he was thinking of an S- Corporation he could not have any employees.
LIT1 Task 1 SOLE PROPRIETORSHIP: As the first word in the name suggests there is no distinction between the owner and the business, legally they are viewed as one entity. When it comes to starting a business this option is a perfect one because there is little to no start-up cost and autonomy since it is now your sole responsibility. The main disadvantage to this type of business is that financially the owner may find it hard to start up because any money that I loaned is a personal loan. • LIABILITY – The owner (proprietor) is liable for all debts and profits the business is and vice versa. The business and the owner are one entity so when the business owes on a debt the owner’s personal assets are liable to be taken as payment
For one, American Life League usually is tax exempt. They can offer products at a discount since they don't have the expense of taxes, and sometimes they can offer products to buyers who pay no sales tax on the purchase. American Life League often has a volunteer staff in many roles artists, canvassers, attorneys. Volunteers can mean an enormous savings to the business, which is particularly important to a small nonprofit. The board of directors must by law be composed of volunteers, which can be an advantage to the company.
In Delaware however, no minimum capital is needed to incorporate, resulting in an inexpensive incorporation. In addition, the Delaware Corporate Dept provides a streamlined process to incorporate. The corporate officers never needs to step foot in the state and annual meetings can be held anywhere in the world. Unlike some states that require at least three people to fill official corporate roles, in Delaware, one person can be the officer, director and shareholding at the same time. But the major reasons for Delaware’s dominance in the incorporation of businesses, is due to the quality of Delaware’s courts and judges.
One tax rate makes for easy computation by the Internal Revenue Service and straightforward payments from taxpayers (Meehan). Because the flat tax taxes only one income, it is easier to understand and to report. Taxpayers save the financial cost of complying with current IRS regulations, which often includes lawyers, accountants and other resources (Meehan). The flat tax remains a popular idea in part because it eliminates double taxation (Meehan). It removes the section of the tax code that is biased against the formation of capital (Meehan).
| | | Question 2 0.6 out of 0.6 points | National Consumer Goods Corporation and Paula Purchaser agree to resolve their dispute in arbitration. The arbitrator's decision is called Answer | | Selected Answer: | an award. | Correct Answer: | an award. | | | Question 3 0.6 out of 0.6 points | Fact Pattern 3-1Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.Refer to Fact Pattern 3-1. The least expensive method to resolve the dispute between Java and Kaffe may be Answer | | Selected Answer: | negotiation because no third parties are needed.
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.
Riordan Manufacturing will never have to pay for service it is not using. Most traditional online computing services offer business services that are bundled. Accessing the Cloud, the company will only pay for services used while saving the company money. These three characteristics proves that cloud computing is efficient and has more benefit than traditional computing (TheCloudGuy,
Another reason people like to defend Wal-Mart is because they have better prices than most everyone else which is easier on peoples wallets. Wal-Mart has become such a household name that most people will shop there without checking out other business when they realistically could be spending a little extra pocket change and helping their economy and help control this giant corporation. The savings people get are on account of cheap foreign goods that aren’t as good as American goods and people don’t realize it because they just remember the good deals. In my opinion there aren’t any other reasons to defend