...decision due to its rapid growth. The McGee’s simply do not have the resources to meet the demands of their cliental. Therefore, they must look into restructuring their business in effort to remain afloat. As their business advisor, I would carefully explain the three different legal forms of business organization (sole proprietorship, partnership and corporation). I would begin by informing them of their current legal form of business which is sole proprietorship. Seeing the fact that they are currently operating under this entity, they should be aware of its advantages such as retaining all profits once debt has been paid. Therefore, it would be imperative to focus on the disadvantages because it is a direct link to their problems. Disadvantages like being unlimited liable for all business debts and insufficient capital for new opportunities. Upon learning the disadvantages of their sole proprietorship, I would expect the McGee’s to inquire about the other legal forms of business organizations. There, I would take the opportunity to inform them of a limited liability corporation (LLC), and some of its advantages/ disadvantages. The main attraction of an LLC is its limited liability status. The LLC would limit their personal liability from business debts and damages incurred by the business. Another advantage is tax benefits. The tax rate for a corporation is more favorable, and personal liability is reduced. This structure also allows more flexibility for profit and loss....
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...Chapter 1 The Financial Manager and the Firm Learning Objectives 1. Identify the key financial decisions facing the financial manager of any business firm. 2. Identify the basic forms of business organization used in the United States, and review their respective strengths and weaknesses. 3. Describe the typical organization of the financial function in a large corporation. 4. Explain why maximizing the current value of the firm’s stock price is the appropriate goal for management. 5. Discuss how agency conflicts affect the goal of maximizing stockholder wealth. 6. Explain why ethics is an appropriate topic in the study of corporate finance. I. Chapter Outline 1.1 The Role of the Financial Manager A. It’s All about Cash Flows • The financial manager is responsible for making decisions that are in the best interest of the firm’s owners. • A firm generates cash flows by selling the goods and services produced by its productive assets and human capital. After meeting its obligations, the firm can pay the remaining cash, called residual cash flows, to the owners as a cash dividend, or it can keep the money and reinvest the cash in the business. • A firm is unprofitable when it fails to generate sufficient cash flows to pay operating expenses, creditors, and taxes. Firms that are unprofitable over time will be forced into bankruptcy by their creditors. In bankruptcy, the company will be reorganized, or the company’s...
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...Describe the characteristics of the four basic forms of business ownership. A sole proprietorship is a business that is owned, and usually managed, by a single person. A partnership is a voluntary arrangement under which two or more people act as co-owners of a business for profit. A corporation is a legal entity created by filing a document with a state agency also known as the articles of incorporation. A corporation is considered to be a separate and distinct from its owners, who have a limited liability for the debts of their company. A limited liability company is a relatively new form of business ownership that, like a corporation, offers limited liability to its owners. However, LLCs offer more flexibility in tax treatment and simpler operating requirements. Discuss the advantages and disadvantages of a sole proprietorship A sole proprietorship is the simplest and least expensive form of ownership to establish. It offers the single owner the flexibility of running the business without having to seek the approval of other owners. If the business is successful, the sole proprietor retains all the profit. The earnings of a sole proprietorship are taxed only as income of the owner with no separate tax levied on the business itself. A key disadvantage of a sole proprietorship is that the single owner has unlimited liability for the debts of the business. The sole owner also must often work long hours and assume heavy responsibilities. Sole proprietorships as normally have...
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...Explain the forms of business. Which form of ownership would you prefer? There are 3 main forms of Business organizations a) Sole Proprietorship (b) Partnership (c) Corporation a) Sole Proprietorship In a Sole Proprietorship, there is no legal distinction between the Sole Proprietor's status as an individual from his or her status as a business owner. Although sole proprietorships are common in a variety of industries, they are concentrated primarily among small businesses such as repair shops, small retail stores and service providers such as plumbers, hairstylists and photographers. Advantages • Easiest to get started • Greatest Freedom of action • Maximum authority • Income tax advantage and Social Security advantage Disadvantages • Unlimited Liability • Death or illness endangers business • Growth limited to personal energies • Personal affairs easily mixed with business b) Partnership A partnership is an association of two or more persons who operate a business as co-owners by voluntary legal agreement. Many small businesses begin as partnerships between co-founders. Advantages • Two heads are better than one • Additional sources of venture capital • Better credit rating than corporation of Similar size Disadvantages • Death withdrawal, or bankruptcy of one partner affects business • Difficult to get rid of bad partner • Hazy lines of authority c) Corporation ...
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...[pic] FACULTY OF BUSINESS AND ECONOMICS DEPARTMENT OF BUSINESS ADMINISTRATION Fall 2014 |COURSE CODE AND TITLE |: |MGMT 101 – Introduction to Business I | | | | | |COURSE LEVEL |: |First Semester/First Year | | | | | |COURSE TYPE |: |Area Core | |LECTURERS | | | |Group: 1 | |Turhan Kaymak Office: BE 322 (Business, 3rd floor) | | | |Tel: 630 2745 e-mail: turhan.kaymak@emu.edu.tr | | | | | |Groups: 4, 5 | |Semi Bora Office BE 315 ...
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...Faculty of Business and Environmental Studies T1/13 Coursework Assignment Diploma in Engineering Business Management Module: 102KM Business Organization Assignment Title: Types of Business Organizations Date & Time of Submission : Week 10 (22:00) Assignment Weighting : 50% Word Limit : 3000 words Description of Assignment This is an individual assignment and carries 50% of the module weightage. A business can have a number of different types of ownership depending on the aims and objectives of the owners. This assignment requires further study on the different types of ownership, which makes up the different types of business organizations, which will be tested in tasks 1-3. Brief TASK 1 You are required to explain the different types of business organizations as listed below: - Sole proprietorship (10 marks) - Partnerships (20 marks) – Please discuss the different types of partnerships - Corporation (10 marks) TASK 2 For each type of Business organization identified in Task 1, discuss 2 advantages and 2 disadvantages that reflect the role of the Business Organization in the economy. 2.5marks will be awarded for each advantage and disadvantage (30 marks) TASK 3 For each of the types of business organizations listed in Task 1, explain in detail and support with a brief study of a Company that is based on that particular organization structure...
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...Business Structure Advice Dear John Owner Starting a new business is not an easy decision to take. At first I would like to coagulate you for taking this decision and it will be my pleasure to explain to you the different business forms that exist, along with each business form advantageous and disadvantageous so you can choose the business form that is best suits your new business. There is more than one form of business structure such as: Sole Proprietorships, Partnerships, Corporations, and the Limited liability corporations (LLCs) which are a hybrid form of Business organizations. The sole Proprietorship is owned by one person, and it’s the simplest way to start a business as it’s less regulated than other forms of business. Sole proprietor does not have to share the decision-making authority with anyone else and keeps the profits and the advantage of this form that the person subjected to lower income tax than other forms. The disadvantage that the business life ends by the death of the owner, and it’s hard to transfer the ownership of this form and it’s hard to raise the capital of this form of business, as the financing options for this form depending on entrepreneur equity contributions, lease and debt financing (ENTREPRENEUR, 2014). In partnerships, partners come together to manage a business through an agreement that determines the capital, the contribution of each partner in the capital, the role of each partner in the partnership, and the agreement can determine...
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...trader describes any business that is owned and controlled by one person - although they may employ workers. Individuals who provide a specialist service like plumbers, hairdressers or photographers are often sole traders. A hairdresser trimming someone's hair Sole traders do not have a separate legal existence from the business. In the eyes of the law, the business and the owner are the same. As a result, the owner is personally liable for the firm's debts and may have to pay for losses made by the business out of their own pocket. This is called unlimited liability. Advantages * It is easy to set up as no formal legal paperwork is required. * Generally, only a small amount of capital needs to be invested, which reduces the initial start-up cost. * As the only owner, the entrepreneur can make decisions without consulting anyone else. Disadvantages * The sole trader has no one to share the responsibility of running the business with. A good hairdresser, for example, may not be very good at handling the accounts. * Sole traders often work long hours. They may find it difficult to take holidays or time off if they are ill. * They face unlimited liability if the business fails. http://www.bbc.co.uk/ Partnerships Partnerships are businesses owned by two or more people. Doctors, dentists and solicitors are typical examples of professionals who may go into partnership together and can benefit from shared expertise. One advantage of partnership is that...
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...Distinguish between needs and wants. 4. Discuss the role played by producers in the satisfaction of consumer needs and wants | SPAR ( Spontaneous Argumentation)Graphic Organizer | DiscussionsQuestion and Answer | Commerce TextbooksPowerPoint PresentationInternetLaptop | Assignment-categorizing needs and wants. | 1 | C) Economic Systems | 5. Identify and explain types of economic systems | Graphic Organizer | Questions and Answers | Chart PrintoutsCommerce Textbooks | Quiz | 1 | D) Direct and Indirect Production | 6. Distinguish between direct and indirect production 7. List and explain the commercial occupations. | Graphic OrganizerCooperative learningMnemonic Strategies | Role playDiscussionsGraphic Organizer | Commerce Textbooks | Assignment-categorizing occupations as either a direct service or indirect service | 2. Production and Distribution | | | | | | 2 | A) Stages of Production | 1. Define the term production 2. Identify the stages of production 3. List and explain the classification of occupations 4. Explain and illustrate the branches of production and the organization structure of commerce...
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...strategy audit together. In this module, you will conduct a comprehensive assessment of the internal environment at your business unit or organization you are working with for this project, also known as an organizational assessment, and present your findings in a report. In your report, you should analyze the operating characteristics and assets of your business unit. The SWOT model is one of the most common business tools used during organizational assessment. Another is developing a balanced scorecard based on a prescribed or planned set of performance objectives that will be measured and evaluated regularly. In this assignment, based on the external environmental scan you conducted in M2: Assignment 2 and the internal environmental scan in this assignment, you will develop a SWOT analysis and a balanced strategic scorecard. Part I: Internal Environmental Scan (2–3 pages) The internal environmental scan or organizational assessment should include the following: • Mission, vision, and values: Assess the organization’s understanding of the mission, vision, and values, and how they relate the business strategy. Is there consensus on the mission and vision of the organization? What are the shared values of the organization? What are the behaviors espoused by these values? • Strategy clarification: Assess the organization’s understanding of the business strategy through the interview with a mid-level or senior manager. Assess his or her...
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...Outsourcing Teresa McGlown BUS 630 Wendy Achilles 08/27/2012 Table of Contents Introduction 1 Forms of business aspects covered by outsourcing 1 Outsourcing with reference to Hechlinger, J. Article 2 Other articles highlighting the application of new learning with respect to outsourcing 3 Dean Meyer’s Article highlighting the advantages of outsourcing 3 Sholstica’s Article highlighting the disadvantages of outsourcing 6 Present and future application of outsourcing within workplace 6 Conclusion 7 References 8 Outsourcing Introduction In the present dynamic environment, one way the companies can gain competitive edge over their competitors is by taking full advantage of all the business aspects. One of such possible aspect of performing organizational activities in an efficient manner is through the platform of outsourcing that provides a company an opportunity to hire an outside firm having proficiency in a particular field and then getting some of the organizational tasks completed through this hired firm either at a reduced cost or an increased productivity rate. A number of factors (both related to internal and external environment) are considered that helps to decide that whether outsourcing is a right answer for a particular company. The process of outsourcing facilitates learning of a number of aspects that if properly applied within an organization can serve as a competitive element for the company, enabling them to remain a competitive force within...
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...Three Main Business Structures Graling Carmichael FIN/571 Operations Management November 3, 2014 Danica Djordjevich Three Main Business Structures There are normally seven types of business used in the United States; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporation. For the purpose of this paper, I will concentrate on the three main business structures of sole proprietorship, partnerships and corporations and explain how each might or might not be advantageous. Sole Proprietorship A sole proprietorship is a business owned by one person. About three-fourths of the businesses in the US function with this business structure (Bates, Kidwell, & Parrino, 2012). This business structure usually consists of a owner and a small number of employees. One of the main advantages to this structure is it is the simplest type of business to start, and it is the least regulated by the government. Another benefit is that a sole proprietor keeps all the profits and has the authority to make all the decisions. And lastly, profits are subjected to lower income taxes compared to those businesses structured as corporations. Sole proprietorships have some disadvantages as well. The sole proprietor’s access to the capital is limited to personal funds plus any loans he or she can obtain. The sole proprietor is legally responsible for the business’s contracts. And, the sole proprietor is legally...
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...be held responsible for understanding and adhering to all policies contained within the following two documents: · University policies: You must be logged into the student website to view this document. · Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Goleniewski, L. (2007). Telecommunications essentials. (2nd ed.) Boston, MA: Pearson. Panko, R. R., & Panko, J. L. (2011). Business data networks and telecommunication (8th ed.) Upper Saddle River, NJ: Prentice Hall All electronic materials are available on the student website. Software TestOut LabSim® Network+ Week One: Evolution of the Telecommunications Industry Details Due Points Objectives 1.1 Describe the evolution of the telecommunications industry and its major technologies. 1.2 Identify past and present voice communications technologies. 1.3 Describe telecommunications network structures....
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...Assignment Brief | Title of Qualification:Edexcel BTEC Level 4 HNC in Business | Unit title: Unit 1 Business Environment | Unit code(s): Y/601/0546 | Learner:Nuraiym Azygalieva | Assessor:Dinara Bobusheva | Internal Verifier:Talant Asan uulu | Title of Assignment:Organizational purposes of Business and effective strategy in context of Business start-up.Grading criteria: P1.1, P1.2, P1.3; M1; D1.Related learning outcomes:LO1: Understand the organizational purposes of businesses. | Assignment Number:__1__of __3__for this Unit | Date assigned:November 1, 2013 | Date of review:November 8, 2013 | Date for final submission:November 15, 2013 | Learner declaration:I confirm that this assignment is my own work and any assistance received has been acknowledged and all sources have been stated.Signature: Date: November 15, 2013 | Scenario:In order to facilitate the interactive teaching technique due to accepting the basic findings of Interactive Business Situations Analysis conducted during the seminars and independent students’ study, the following two alternative scenario have been proposed for designing the required Assignment # 1 as follows:Scenario # 1:Primary terms of Business start-up to be organized as “Skull-Up” company are determined as Business partnership with full liabilities legal form. Business specialization of considering enterprise is Restaurant service providing...
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... CW1 1. Use examples of recent advertisements to explain the role and functions of advertising. What is Advertising? It is a monetary and non-monetary form of persuading the audience through communication that uses: “Non-personal mass media – as well as other forms of interactive communication – to reach mass audiences to connect an identified sponsor with a target audience” (Wells, Moriarty, and Burnett) If firms want to gain and increase sales and profits, they will have to be communicated to the customers. A total marketing communication program is called “promotion mix”. One of its key components is advertising. Before firms begin this step in ‘promotional mix’ business must understand the important relationship between the product and the market place. {Advertising is the most important element of promotion, which is a key component of the Marketing Mix.} What is Marketing Mix? This is one of the most famous marketing terms when studying Marketing and Advertising. “The marketing mix is the set of controllable tactical marketing tools. That considers the the 4P’s. * Product * Price * Place * Promotion This is what firm blends to produce the response it wants in the target market”. {Kotler and Armstrong (2010)} What is the right promotional mix? Business need to see how products or services are presented to customers. Their main criteria to check on is, personal selling, sales promotion, public relations...
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