...Proprietorship: Sole Proprietorship is the most common and most simplistic type of business. This model of business the owner and the business are one and the same. A sole proprietorship is unincorporated. Every form of business has advantages and disadvantages. As the owner you can organize, name and take the business as far as your aspirations take you, a sole proprietorship has risks; the responsibility of time, personnel, scheduling, recruiting and accounting management of the company is on you. Liability – There are numerous liabilities in a sole proprietorship. As the proprietor, you are a liability because you are one individual. If an accident occurs, and you are hospitalized for an extended period you are losing revenue to pay your bills. The type of business you run may also be a liability due to outside weather conditions. If you have adverse weather conditions, you may have days or even weeks of lost revenue. If your setup a sole proprietorship the creditors have the ability to acquire your personal assets to compensate for the debt. Income Taxes – Planning for taxes with a sole proprietorship can be very difficult. Since the business and you are one and the same, personal income and business income must be filed and will be taxed at the highest rate. Longevity/Continuity – Sole proprietorship can be one of the hardest to earn money and resources. When the owner is no longer around the business cannot be passed to another individual. Control – As the owner you...
Words: 3101 - Pages: 13
...do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. The employees can reasonably expect privacy in the workplace in places like restrooms, parking lots, lounges and in the kitchen area. But generally speaking it is really difficult these days to have complete privacy. 2- Explain whether the size of the business can have any effect on whether Tony is eligible for family leave under the FMLA. It makes a difference if employee is in an open area or in an enclosed office and courts have so held. See, for example, United States v. Lefkowitz, 464 F.Supp. 227 (C.D.Cal. 1979), aff'd, 618 F.2d 1313 (9th Cir. 1980) “Outside his or her own workspace, a corporate officer or employee has a reasonable expectation of privacy to challenge a search if he or she has a "possessory or proprietary interest" in the area searched and there is a connection between this area and his or her own workspace”. Both open area work spaces and enclosed private offices have their own benefits. Open space allows for better communication and exchange for information among co-workers. It is much easier to ask each other questions in an open environment. While on the other hand 90 percent of the participants reported that privacy is the number one benefit of a closed space environment. Employees feel more secure and reduced noise (O’Neill, 2008). After the introduction of panel-based open plan office systems, we still strongly...
Words: 986 - Pages: 4
...company doing business in Arizona. I am not a customer of Desert Rain Enterprise (DRE) but I have a connection to the company. DRE is owned by Daniel Westergaard, my father-in-law and his brother Thomas. They have a 50/50 partnership, with Thomas currently being the silent partner (Daniel Westergaard, personal communication, December 21, 2014). The Business Plan When asked what the business plan is, Daniel answered, “Well to make money of course”. Upon digging, the Westergaard’s did have a business plan, at the beginning and when times were good. However, now the plan is to survive and keep doing what is working. In order for DRE to be successful the Westergaard’s need to balance the components of business. Right now this isn’t happening. DRE provides water vending machines to local convenience stores, for use by the store’s customers.DRE charges 25 cents for each gallon dispensed. DRE and the store owners have an agreement, DRE purifies water provided by the store and DRE gives a portion of the whole to the store. DRE’s business commerce is a trade of placement, product and money allowing for a profit for both store owner and DRE. Daniel has a history of water purification going back to Culligan in Indiana. His 30 plus years in the industry (Mark Westergaard, personal communication, December 21, 2014) and the understanding of how to purify water and the machinery needed to produce quality drinking water has made him a specialist. The business occupation...
Words: 516 - Pages: 3
...Introduction “A friendship founded on business is better than a business founded on friendship.” [ (Rockfellar) ] Partnerships are defined as the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. [ (IRS) ]. There are two different type of partnerships limited, and general. Domestic Corporation is defined as a U.S. corporation doing business in the state in which it is incorporated opposite of foreign corporation [ (Answers.com) ] Partnerships John D Rockefeller stated that partnership is “A friendship founded on business is better than a business founded on friendship, but 70% of business partnerships fail (according to Harvard Business School); the fastest way for a business to succeed is to ignore the dynamics between yourself and the other partners. According to the National Center for State Courts, there were a whopping 14,957,085 civil suits filed in 2001 and that number is increasing every year. The shocking statistic is more than $200 billion dollars a year are poured into fending off litigation [ (National Center for State Courts) ]. Partnerships are used to minimize the disadvantages of a sole proprietorship and maximize the advantages of having more than one owner. Most states have a model law governing partnerships based on the uniform partnership act [ (Ferrell, Hirt, & Ferrell, 2009) ]. Partnerships...
Words: 983 - Pages: 4
...Introduction After attending several lectures at xxx, I have decided to open a kiosk business in my estate selling potatoes. I therefore have to decide under what legal form to register my business after a careful consideration of the different pros and cons and finally identify what would make up the supply chain of my business. Background information There are a range of legal structures associated with different forms of business: 1. Sole trader businesses are the easiest to set up because there is no complex paperwork. The business and the owner are the same person in law. The sole trader does not have limited liability which means that they are responsible for all the debts of the business. The sole trader has to produce an annual accounting return for the Inland Revenue. 2. Partnerships are set up by a Deed of Partnership which is a document made out by the partners and witnessed by a solicitor. This Deed sets out the legal relationship between partners e.g. how profits will be shared out, responsibilities of partners etc. In traditional partnerships the partners had unlimited liability i.e. they were jointly responsible for the debts of their partnership. In 2001 this has been altered so that some large partnerships e.g. accountancy firms can have limited liability. 3. Companies are separate in law from the individual owners (shareholders) of the business. This means that should the business run up debts the shareholders are only liable for these debts up to the sum they...
Words: 1921 - Pages: 8
...Acme Fireworks Name Course Instructor Institution Date of Submission Acme Fireworks Business Contracts The business contract is considered as the common legal transactions most business people get involved to ensure the activities run smoothly. When a person understands the contract law, he/she is good to create a sound business agreement. However, the agreement would be legally enforceable in case something bad happens. As the manager of Acme Fireworks, I was requested by the owner to determine which law between common law and the Uniform Commercial Code (UCC) will govern the business. According to Sheleff, (2013), the common law controls the majority of contracts that include intangible assets, employment, real estate, services, and insurance. On the other hand, the Uniform Commercial Code (UCC) governs contracts for the securities and sale of goods (Meiklejohn, 2008). Therefore, the contract between Acme Fireworks and the retailers would be governed by Uniform Commercial Code (UCC). There are various articles in the UCC and specifically, Article 2 deals with the transaction of goods. The statute in the article stipulates precisely the regulation of sales to consumers and other classes of buyers. Acme firework is a retail outlet that deals with the sale of fireworks and also displaying them. It will enter into a contract with other large businesses to produce large quantity on a regular basis, and it would...
Words: 2322 - Pages: 10
...HELP Ask a Question Give Feedback 1-800-FED-INFO Browse Knowledgebase TOOLS Start a Business Learn About New Health Care Changes Find Opportunities Browse resource for Veterans SBA Tools Redirecting to BusinessUSA.govcloseYou are being redirected to BusinessUSA.gov – an SBA partner. Please click the OK button below to continue. Your browser will open in a new window. Ok Redirecting to BusinessUSA.govcloseYou are being redirected to BusinessUSA.gov – an SBA partner. Please click the OK button below to continue. Your browser will open in a new window. Ok Redirecting to BusinessUSA.govcloseYou are being redirected to BusinessUSA.gov – an SBA partner. Please click the OK button below to continue. Your browser will open in a new window. Ok Redirecting to BusinessUSA.govcloseYou are being redirected to BusinessUSA.gov – an SBA partner. Please click the OK button below to continue. Your browser will open in a new window. Ok Redirecting to BusinessUSA.govcloseYou are being redirected to BusinessUSA.gov – an SBA partner. Please click the OK button below to continue. Your browser will open in a new window. Ok Redirecting to BusinessUSA.govcloseYou are being redirected to BusinessUSA.gov – an SBA partner. Please click the OK button below to continue. Your browser will open in a new window. Ok Redirecting to BusinessUSA.govcloseYou are being redirected to BusinessUSA.gov – an SBA partner. Please click the OK button below to continue....
Words: 1653 - Pages: 7
...Business Law and Communications LIT1, Assignment 1 Your business is now currently operating as a Sole proprietorship. You and your business are one. Any income the business receives and expenses paid will flow in and out from you personally and will be reported as a Schedule C on your personal income taxes. As a sole proprietor you carry full responsibility and are 100% liable for the company. This means any debts you owe from your business if there are not adequate funds available from the business account, legally you are personally held responsible and your personal assets are at risk. As a sole proprietor you have total control of your business and all business decisions, your company starts the day you choose and can dissolve the day you choose as well. If you desire to have a business name that is different from your name you can easily register for a doing business as also known as “dba” license with the local court. The convenience – this has been a simple and convenient way to run your business in the beginning stages. There was not much more you had to do other than simply run your business and report your end of year total income and expenses. Liability – Total liability of the company is on you as the owner. Legally you are held responsible for all expenses the business incurs if you are unable to pay they can come after your personal assets. Income Tax – You will be required to file an additional schedule on your taxes “Schedule C” where all profits and losses...
Words: 2801 - Pages: 12
...Business Environment 2012 Business Environment 2012 ICBT City Campus Insaf Ismail Batch 40 ICBT City Campus ICBT City Campus Insaf Ismail Batch 40 ICBT City Campus Acknowledgement I would like to thank Mr. Anurugdha yapa for imparting great knowledge, assisting & believing in us & giving us a hand on experience & opportunity in making this assignment a success. Your guidance gave us the strength to get through many a trial in completing this assignment successfully. My endless thanks conveyed to our parents for extending their continuous encouragement & generous support. We are also grateful to them for showing us the correct path in making a wise choice in life to pursue studies at a prestigious institution. Further gratitude is extended to ICBT, All the other lecturers & Staff members, Lab Assistance & Library Staff for their assistance extended towards completing our assignment successfully. Last but not least, we would like to thank all our colleagues who have supported us in numerous ways. I take this opportunity to appreciate their endeavor to help us out with their knowledge & advices amidst their heavy work load. Executive summary The objective of this Business Environment assignment is to provide an efficient decision in understanding organizations internal and external environments. This assignment has three main tasks which has been answered efficiently and stylishly to achieve the three pass criteria’s. This report...
Words: 6085 - Pages: 25
...Other Concepts 2 B.) Agency and Partnership Law 2 II.) INTRODUCTION TO THE CORPORATE FORM 16 A.) Formation and Structure 16 B.) Debt, Equity, and Valuation 22 III.) CONTROL OF CORPORATE DECISIONS 32 A.) The Role of the Shareholder 32 B.) Management Obligations 50 1.) Duty of Care 51 2.) Duty of Loyalty 56 3.) Duty of Fairness: Parent-Subsidiary Relationships 63 4.) Duty of Good Faith 64 5.) Management Obligations Under Federal Securities Laws 67 C.) Shareholder Litigation 76 IV.) Structural Changes 85 A.) Transactions in Control 85 B.) Mergers and Acquisitions 86 1.) Mergers 87 2.) Sale of Assets 93 3.) Asset Purchase or Tender Offer 94 C.) Public Control Contests 96 1.) The Poison Pill 100 2.) Enhanced Review When Business is Up for Sale 103 3.) Proxy Contests for Corporate Control 106 4.) Protecting the Deal: Shareholder Lockup Agreements 109 I.) INTRODUCTORY PRINCIPLES • Definitions o Corporate Law: The allocation of rights and power within a corporation; the internal body of law ▪ Addresses the creation of economic wealth through the facilitation of voluntary, ongoing collective action ▪ Flexible- expectation that market discipline will weed out what is not working ▪ Principle aim- reduce agency costs of all sorts o Securities Law: Regulates capital markets that corporations use to obtain funding o Firm: A form of business relation that has a temporal dimension, a...
Words: 62796 - Pages: 252
...MARKETING OF INSURANCE SERVICES AGENCY APPROACH In recent times the insurance business has been based on agency representation and relationship. The agent represents the principal in the sale of insurance policies and in forcing a contractual relationship between the principal and the client. According to Nwachukwu (1991), the following criteria will be considered in agency creation 1) The creation of agency. The relationship can be formulated either through written or oral communication or by conduct. When required to act under seal, the agent must be given a document to validate his authority. This gives the agent power of attorney to act on behalf of his client. It has also been 2) Capacity: only individual who have been proven capable can act as agents. Exceptional cases are made during his period of sanity. Also a company can take up the role of an agent for another party, even if its not in line with the business operation of the company. The relationship that exists between the principals and agents is solely based on the resultant benefits. Classification of the Power and Authority of the agent 1) Express Authority: in this situation, the authority and rules governing the relationship is clearly spelt out in writing, oral or by deed. The oral form might not cure handy when issues come up. Where the written authority might not be specific and this gives room for manipulation of the principal by the agent. 2) Implied Authority: this authority...
Words: 1713 - Pages: 7
...proprietorship, e-commerce entrepreneurs and trends in their e-commerce. This study uses a mixed-method quantitative and qualitative approach for collecting the data. The study finds that most sole proprietorships in e-commerce are owned females between 31 and 40 years old who are educated with a Bachelor’s degree (63.16%) and draw an income of 40,001–50,000 bahts per month (approximate $1 USD = 33 bahts). Most of these sole proprietorships (66.59%) are located in the central part of Thailand. These entrepreneurs spend more than eight hours a day on their businesses and supply their products by themselves. However, most of the problems faced by these sole proprietorship, e-commerce entrepreneurs involve the cost for investment in the business and the knowledge that is required in order to be an entrepreneur. Nevertheless, the trend toward sole proprietorship, e-commerce entrepreneurs in Thailand will increase with the adaptation of...
Words: 3881 - Pages: 16
...To gain a better understanding of how acts of congress are formed from inception to enactment there are various methodologies one can use. For this paper I will be using the Analytical Framework methodology as described in our class textbook, The Struggle for Democracy by authors Edward Greenberg and Benjamin Page. The congressional act I’ve chosen to explore is one of great importance to all working Americans. The Family and Medical Leave Act of 1993 specifically deals with the need of our nation’s workforce as it relates to work/life balance. The purpose of this paper is for the reader to gain an understanding of how the Family and Medical Leave Act of 1993 came to be signed into law by providing the context of why the need for such a...
Words: 2834 - Pages: 12
...Notes on Business Organization Centralisation and Decentralisation Centralisation implies the concentration of authority at the top level of the organisation while decentralisation means dispersal of authority throughout the organisation According to Allen Centralisation is systematic and consistent reservation of authority at central points within an organisation. Decentralisation applies to the systematic delegation of authority in an organisation context. Advantages of Decentralisation * Decentralisation reduces the workload of top executives. * It improves job satisfaction and morale of lower level managers by satisfying their needs for independence, participation and status. * Decision making is quicker. * It facilitates growth and diversification. As each product division is given sufficient autonomy for innovation and creativity. * It gives opportunity to subordinates to exercise their own judgment. They develop managerial skills which will be useful to the organisation in the longer run. * Decentralisation requires wider span of control and fewer levels of organisation. It speeds up communication. * Decentralisation increases the administrative expenses and each division or department has to be sufficient in terms of physical facilities and trained personnel. * As each department or division enjoys substantial autonomy it might lead to co-ordination problems. * There might be lack of uniformity and inconsistent procedures as each...
Words: 5865 - Pages: 24
...and explain those decisions to the people who report to them. Understanding corporate finance gives managers the information they need to inform and motivate others. There are three main forms of business organization are: sole proprietorships, partnerships, and corporations. They may start as a sole proprietorship or partnership and evolve into corporations as they grow. The proprietorship has three important advantages: it’s easily and inexpensively formed, it’s subject to few government regulations, and the business pays no corporate income taxes. The proprietorship also has three important limitations: it’s difficult for a proprietorship to obtain large sums of capital, the proprietor has unlimited personal liability for the business’s debts, and the life of a business organized as a proprietorship is limited to the life of the individual who created it.The major advantage of a partnership is its low cost and ease of formation. The disadvantages are similar to those associated with proprietorships: unlimited liability, limited life of the organization, difficulty of transferring ownership, and difficulty of raising large amounts of capital. The tax treatment of a partnership is similar to that for proprietorships, which is often an advantage.The corporate form of business has three major advantages: unlimited life, easy transfer of ownership interest, and limited liability. While the corporate form offers significant advantages over proprietorships and partnerships...
Words: 862 - Pages: 4
