...Comprehensive Statement Analysis Business organizations come in different forms, and although they all have financial gains and losses, not all have the same rules and regulations that need to be complied with when preparing financial statements. The Advantages and Disadvantages of the Different Forms of Business Organization Sole proprietorship is a business organization that is owned by one individual. The advantages to a sole proprietorship is that all profits go to the business-owner and that the owner has full control of the business (Kimmel, Weygandt, & Kieso, 2011). There are also some disadvantages in a sole proprietorship-such as the owner is personally liable for all debts and obligations of the business. Another disadvantage is that the business and the owner are not separate beings (Cheeseman, 2013). A business organization that is owned by two or more individuals is a partnership. The advantages to a having a business partnership are that there is more capital put into the business and that the obligations and debts are shared among each partner. Individuals who are part of a partnership can also deduct their losses through their personal income tax. There are a few disadvantages to being part of a partnership are that all profits are shared and that all decisions need to be made by each partner (Cheeseman, 2013). A C Corporation is any corporation that is taxed separately from its owners. Corporations are a “separate legal entity (or legal person) for most purposes"...
Words: 1310 - Pages: 6
...funds for creating a small business. This is the best time to get Webb’ Inc started. Sandy Webb will sit down and examine the forms of the four business organization would best suit her service. The company will consider legal, tax, accounting, and other implications when selecting from the four business types. The Four Forms of Business’ There are four main forms of business organizations that Sandy the owner of Webb Inc. must choose form to start the process of forming her business. The legal entity in which a business owner can choose from is sole proprietorship, partnership, C corporation, and S corporation. Along, with the advantages and disadvantages of each type of business form. Sole proprietorship is the most common form utilized for a small business. This type of form is used, especially in the early stages of a business controlled by one person. This one person is directly responsible for the management and conduct of the company. The advantage of present the sole proprietorship is that this is least experience to own and operate because there are no particulars concerning the legal organization. There are no rules governing in which it must have a purpose. The disadvantage of this type of form is that the owner is liable for the actions and debts created for and against the company. Tax implications for sole proprietors are taxes are paid on his or her personals income taxes. The business is not taxed separately. The legal implications of being a sole proprietor...
Words: 1152 - Pages: 5
...Small Business Idea Paula Boyce University of Phoenix Accounting ACC - 561 Professor Trenda Hackett December 07, 2011 Small Business Idea The government has released fund for creating small businesses. One’s interest is to establish a small business and must determine which of the four forms of business organization will best suit the business chosen. Legal, tax, accounting, and other implications when selecting from the four business types are matters of considerations (University, 2008 - 2011). The four forms of business include Sole proprietorship, Partnership, C Corporation, and S Corporation. Discussion will explain advantages and disadvantages of the four forms of business, financial statement associated with each form of business organization, and the consequences of tax implications, legal implications, and accounting implications such as SOX and FASB. An explanation what one’s business provides, the choice of one’s business organization form, and one’s rationale for choosing the form of business organization chosen (University, 2002). Sole proprietorship advantages and disadvantages Sole proprietorship is the most common and simplest form of business. An individual owns and manages the business and is responsible for business transactions and responsible for debts and liabilities incurred (AllBusiness.com, 2007, p. 1). Advantages of sole proprietorship is the proprietor is in full control of the business, no corporate taxes, legal cost is...
Words: 1307 - Pages: 6
...Small Business Idea Paper ACC/561 Anne Holland University of Phoenix Michael De Marco July 16, 2012 Small Business Idea Paper When having the excitement of starting a business, there are several factors and steps to go through before getting the plan started. In the fallowing paper bravely describe our business plan for our new company. We will mention some of the factors that go alone with the process of starting a business. Therefore, summarizing in a substantial way the different types of business structures that are suitable for small and medium sized business, along with describe the legal, tax, accounting, and other implications when of each form of business structure. Business Plan According to Abrams, R. (2003), “ The business plan process entails five fundamental steps: (1) Laying out your basic business concept, (2) Gathering data on the feasibility and specifics of your concept, (3) Focusing and refining the concept based on the data you compile, (4) Outlining the specifics of your business, and (5) Putting your plan in compelling form”. New Business Project Business Name: Universal ATM Service Product or Service: Retailed of Automated Teller Machines, Automated Teller Machines Products, Transactions Processing, Automated Teller Machines Placement, and Automated Teller Machines Services and Repairs. Business Structure: Limited Liability Company (LLC) Rationale for choosing this form of business organization: the founders of Universal ATM Service...
Words: 2117 - Pages: 9
...Legal Implications of Electronic Business Content: 1. Introduction 2. Issues surrounding the laws of E Business in Ireland and EU Countries 3. Legal Background 4. Licensing 5. Websites 6. Selling online and Distance Contracts 7. Recommendations Introduction According to research, Internet-based electronic business (e-business or EB) has been predicted to experience significant growth across Ireland and Europe. (Anderson Consulting 1999; Forrester Research 1999). Legal Implications The central issues of E-Business and the law include the development of E-Business, the role of consumers and regulation of E-Business in regards to consumer protection. E-Business is a new way of conducting business that takes place on the Internet, it has become an important way in which consumers purchase goods across the world as well as due to internet technology progressing rapidly in the last few years. Although E-Business has a big effect on the global trade, governments also have a large effect on the growth of E-Business on the internet by regulating is accordingly. As Governments set regulations for E-Business organisations managers are starting to worry if the regulations will be too tight or may reduce the market in the online trade. Regulation of E-Business is very important for the cyberspace market as it can help or stop the organisations working with E-Business, as well as being able to protect the consumers in the online market. Security...
Words: 744 - Pages: 3
...| | | | Small Business Idea Paper Nakisha Burton ACC/561 Accounting June 9, 2013 | | One of the most important business choices one can make is the decision to become an entrepreneur and invest the necessary time, money, and energy into starting a business. I always dream of owning and running my very own childcare center. The childcare business offers entrepreneurs the opportunity to pursue a passion for child care and child development while enjoying the independence and responsibility of being his or hers own boss. However, starting a childcare business is not as easy as one may think. There is a great deal of information one must be fully aware of. The decision of which type of forms, such as Sole Proprietorship, Partnership, C Corporation, S Corporation, and Limited Liability Company (LLC), can challenging. The legal, tax, accounting implications, the advantages, and disadvantages, the financial statements associated with a childcare center, and plan to present to market, are the reasons to consider for a well designed center that can be develop into a successful plan. Sole proprietorship advantages and disadvantages Unless I choose a specific form of business, my new business will become by default a sole proprietorship or partnership (Daily, 2011). The advantage of a sole proprietorship is ease in establishment and ongoing maintenance as the owner manages operations without the need to consult others. In addition, the solitary owner...
Words: 1438 - Pages: 6
...are interested in establishing a small business, and you must decide which form of business organization would best suit your unique product or service. Consider legal, tax, accounting, and other implications when selecting from the four business types. Write a paper of no more than 1,250 words discussing your small-business idea. Include the following: The advantages and disadvantages of the different forms of business organization, which include the following: Sole proprietorship Partnership C corporation S corporation The different types of financial statements required by law with each form of business organization, including different names for the equity sections. This does not mean an overview of what is on each statement. What entities are required by law to have statements and what is the difference in the equity? The following consequences associated with each form of business organization: Tax implications Legal implications Accounting implications, such as SOX, GAAP and FASB An explanation of the unique product or service your small business provides Your choice of business organization form for your new business Your rationale for choosing this form of business organization For tax implications for each entity, your book only says that some entities have advantages. Do some research to determine what the tax advantages and disadvantages are for each. Legal implications refers to liability and continuity of...
Words: 342 - Pages: 2
...global marketplace in the last few years. This paper will discuss the product launch, and the impact of technology on the product along with the legal and ethical implications and how they were handled. The companies being discussed in this paper are Red Box and eHarmony. Understanding a Successful Launch Introduction These two companies discussed in this paper are Red Box movie DVD rental, and eHarmony online dating service. It will be it is important to understand these challenges in today global economy these two strong successful companies endured. Understanding these challenges can teach what is examined in launching new products along with the impact of technology on these products, along with the legal and ethical implication of launch of these products and services. Challenges in New Product Launches When Red box first evolved it was owned and placed in McDonalds fast food restaurants as a subsidiary of McDonalds and soon was sold to Coinstar who quickly moved Red box to grocery stores, drugstores and others including Walmart, Walgreens and 7-Elevens increasing Red box location to over 28000 kiosks in the United States (Augustine, C 2011). In the late 1990’s after 35 years of work as a psychologist and marrage counselor Neil Clark Warren developed an compatibility matching system to match peoples as couples (Business wire2013) Challenges: example number 1. The challenge for Red Box on it onset was the compition of other video supply retailer such...
Words: 1270 - Pages: 6
...BTEC Business Level 3, Unit 37: Understanding Business Ethics Businesses are limited in what they do. Sometimes by laws and sometimes by the conventions and social codes we live by. Gathered together these are what we refer to as ethics and they can apply to every aspect of business behaviour. Whereas it could be argued that most laws have there origins in ethics, ethical behaviour, by individuals and business go beyond legal requirement and are discretionary, that is to say we can choose to follow them or not. Businesses have not always behaved ethically and many still do not. This unit examines what pressures there are on businesses to behave in an ethical manner. Learning outcomes On completion of this unit you should: 1 Understand the meaning and importance of ethics in the business world 2 Understand the implications of businesses operating ethically 3 Know the social implications of business ethics 4 Understand ethical concerns facing different communities. Context: You have been asked to research and draw up a report explaining business ethics for an organisation that is about to be floated on the stock exchange. The report will demonstrate an understanding of ethical business behaviour; the implications of it and why it is increasingly seen as such a serious issue for more and more businesses. P1 explain the ethical issues a business needs to consider in its operational activities. • Begin by explaining your own understanding of the term...
Words: 855 - Pages: 4
...Small Business Analysis James Dillon ACC/561 March 9, 2015 Tom Myers Small Business Idea My idea for a business is to open a business consulting firm for small business. I want to be able to provide expert insight to business owners on how to run the best and most profitable that they can. This business would start small with a handful of consultants and possibly in the future scale to multiple locations geographically. Sole Proprietorship In a sole proprietorship a company is owned and operated by one person. The only advantage to sole proprietorship is the owner will obtain the profits that the business makes as well as it is not difficult to obtain a sole proprietorship. The main disadvantage to sole proprietorship is the owner’s personal assets are liable for all business encounters. Due to this fact, a sole proprietorship is never the optimal choice for a form of business. DeFrancesco states the following about a sole proprietorship: “If the practice is structured as a professional corporation, S or C corporation, or a limited liability partnership, the assets of the company, rather than the physician’s assets, would be at risk in such cases” (DeFrancesco, 2006). Partnership A partnership is when two or more people bring their assets together and create a business. A couple of advantages of a partnership is that both of the parties are bringing in their time, effort and money to form the business. Also many times in partnership there is one person...
Words: 1115 - Pages: 5
...analysis of implications within App2go’s workplace environment in relation to the issue. The brief will conclude with recommendations for App2go to monitor and control the implications of discussing sexual relations within the work atmosphere. 2.0 Summary of the issue The current issue focuses on talking about sex/sexual relations within the workplace. Talking about sex has become very commonplace in today’s society; it has become very easy to cross the line between professional discussion and discussions meant for after work. It is becoming an ever-increasing problem within the workplace as persons and employees think of themselves as innocently flirting, cracking a joke or making a risqué comment (Seidenfeld,2010). The persons themselves may not have a problem with their actions and remarks; it may in fact be their co-workers who have difficulties understanding and dealing with the said actions. Small businesses are more likely to entail conversations about sex within the workplace due to the likeliness of little to no Human Resource censure (Cain,2015). App2go as a business has grown from a small business of roughly ten employees to a medium size business with over 100 in the space of three years. It is important to the business that the workplace environment is of high quality and respectable standard, regardless of employment level, age or gender; which is why sexual converse within the workplace must be discussed and treated appropriately. 3.0 Implications for management...
Words: 572 - Pages: 3
...BTEC Business Level 3, Unit 37: Understanding Business Ethics Businesses are limited in what they do. Sometimes by laws and sometimes by the conventions and social codes we live by. Gathered together these are what we refer to as ethics and they can apply to every aspect of business behaviour. Whereas it could be argued that most laws have there origins in ethics, ethical behaviour, by individuals and business go beyond legal requirement and are discretionary, that is to say we can choose to follow them or not. Businesses have not always behaved ethically and many still do not. This unit examines what pressures there are on businesses to behave in an ethical manner. Learning outcomes On completion of this unit you should: 1 Understand the meaning and importance of ethics in the business world 2 Understand the implications of businesses operating ethically 3 Know the social implications of business ethics 4 Understand ethical concerns facing different communities. Context: You have been asked to research and draw up a report explaining business ethics for an organisation that is about to be floated on the stock exchange. The report will demonstrate an understanding of ethical business behaviour; the implications of it and why it is increasingly seen as such a serious issue for more and more businesses. P1 explain the ethical issues a business needs to consider in its operational activities. • Begin by explaining your own understanding of the term...
Words: 855 - Pages: 4
...ACC 561 Jared Jones Forms of Business Organization Introduction There are four ways that a business can organize itself. The owners and partners in this newly formed business may share in a variety of responsibilities and must decide which form their business should take on. The four basic ways a business can be organized is a sole proprietorship, partnership, C corporation and S corporation. There are a variety of advantages and disadvantages to each. When it comes to Tax implications, Legal implications and Accounting implications this is especially true. Below is an analysis of the various forms of business and the advantages and disadvantages to each, along with various implications associated with taxes, legality, and accounting. Sole Proprietorship Sole Proprietorship is a type of business run by a lone individual. This individual owns the business, and deals solely with all of the losses and all of the profits. The owner also is responsible for all of the liability and has complete control of business operations (Carr, 2011). Typically the business will have an income statement and a balance sheet. The owner through personal income tax return pays all taxes for the business. There are several advantages to this form of business: It is generally not difficult to organize due the requirements of registration not being as harsh to abide to and the financial capital is relatively small. Also, the sole owner has the ability to make all decision for the company...
Words: 1353 - Pages: 6
...1. Small Business Idea Paper 2. Introduction The Federal Government has allocated suitable funds for potential entrepreneurs and prospected business types who seek to further engage in economic acquisition or create a new element of capital in order to foster the current economy with a potential small business venture. I have chosen to acquire these much needed resources in order to create my small business and join the field of Security in Protective Services. My company is entitled RSJ Security Services, it is an up and coming business founded by Roberto Santiago Juarez, who is a skilled Security Officer, Post Commander, and Operations Manager of seventeen years within the Security Field located in Las Vegas, Nevada. The new company will provide jobs for the community and protect local business interest. With the social climate being in the state of frame that it is in, RSJ Security Services will become a positive element in the field of security. RSJ Security Services will focus primarily on clients and community interests, as well as employee needs. 3. RSJ Security Services will employee an experienced security staff, appealing to experienced security personnel, and present, and former military personnel, and implement based on client contracts using full time officers. RSJ Security Services will begin by having one employee, and that is the owner Roberto Santiago Juarez at the time of the launch of the company. With over seventeen years of experience...
Words: 1536 - Pages: 7
...into the American mainstream, the premise itself has created a distinct medium for business opportunities. The Social Media Marketing Manager, is at the forefront of utilizing social media outlets for consumer transactions. While Social Media is far from a fledgling arena, it is still a relatively new aspect to consider for instances of commerce to take place. Social Media outlets can effectively be viewed as frontier like, especially when considering the legal aspects of any business being conducted within the realm of cyberspace. Therefore, a Social Media Marketing Manager must be legally astute when attempting to create sales opportunities for any respective business. One conducting business via social media can expect many of the same themes that are engrained within traditional business mediums to have an impact on internet based business transactions such as dispute resolution and government regulation. Additionally, there may be unforeseen implications that effect any relationship that exists between the social media provider and the product/service business which uses the respective media outlet. The four characteristics of a legally astute manager, include an acceptance of how important the law is to the success of the organization, a proactive attitude toward legal issues and regulations, the ability to use informed judgment when faced with decisions involving legal implications, and having the knowledge of specific laws, regulations, tools and resources. A social...
Words: 616 - Pages: 3
