...LIT 1 Task 1 PART A Sole Proprietorship Sole Proprietorship is a business owned by one person, as distinguished from a partnership or Corporation. Sole proprietorship is a company, which is not registered with the state as a limited liability company or corporation. Some advantages of a sole proprietorship are that they have flexibility in operations. The sole proprietorship business is undertaken on a small scale. If any change is required in the operations, it is easy and quick to bring the changes. Another advantage in this type is the ease of promptness in decision-making, autonomy. When the decision is to be taken by one person, it is guaranteed to be quick. Thus, the entrepreneur, as a sole proprietor, can arrive at quick decisions concerning the business because he does not have to ask anybody else. There is only one person that makes decisions, therefore, there is no other to criticize, or challenge a decision made. A third advantage is the simplicity of the business. Because of this, it is the most common type of business entity. The only difficulty of this business type is obtaining licenses and permits in the state of operation. If the business will be run under a different name than that of the individual who owns it, a separate special certificate must be filed. Sole Gain is seen as a highly ranked advantage because all revenue goes back to the single investor, the entrepreneur. There are no shareholders to declare dividends. The primary advantage for a...
Words: 1754 - Pages: 8
...The Different forms of business organizations can be a very confusing topic for many business owners. There are many different types of organizations including, but not limited to, Sole Proprietorship; General Partnership; Limited Partnership; C-corporation; S-corporation; and Limited Liability Company. Each type of business organization has its own benefits, drawbacks, and restrictions. This report will summarize each type of business organization and explain the drawbacks and benefits in a clear, concise, and easy to understand way. Sole Proprietorship A Sole Proprietorship is exactly what it sounds like. It is a company that is owned solely by an individual. It may need to be registered with the Secretary of State within the state that the company is owned and operated. This is required if the following conditions apply: * The company is run under a fictitious name (i.e. Marriage Makers, Simply Savings, or Tasty Treats). * The business provides services or goods that require licensure (i.e. Insurances, alcohol, or food). A Sole Proprietorship is not differentiated from the owner which is why, if the above stated criterion does not apply, the business is not required to register with the Secretary of State. The money that is made from the business belongs solely to the owner. For the same reason, the debt that is accumulated by the company is the sole responsibility of the owner. This circumstance makes it possible for a debtor to sue the owner of the company...
Words: 3253 - Pages: 14
...Tiare Gomes Business Marketing Management April 2013 Task 1 (310.1.2-01-06) SOLE PROPRIETORSHIP: The Sole Proprietorship is a business owned completely and solely by one person. It is easy to start this type of business because legal formalities are minimal. Sole Props are popular amongst small businesses or start-ups because of this simplicity. Business taxes are done all under one filing (the owner files his taxes normally with the form 1040 and a schedule C) and all gains and profits belong to the owner alone without having to pay or share with shareholders or co-owners. This can either be a plus, or a minus depending on the situation. Because the owner has the right to all gains, he or she is also responsible for all liabilities as well. If the business goes under or goes into debt, then his or her personal assets are at stake. In addition, if the business owner dies unless there are pre-arrangements made in the form of a will, the business dies with the owner. More about the advantages and disadvantages to follow: * LIABILITY: The owner is financially liable for everything with regards to the business, without limitation. If their business fails or falls into debt, the creditors can come after personal assets. * INCOME TAXES: The business owner and the business is taxed together. The business owner would file a 1040 with a schedule C along with it. All profits are considered personal income. On the bright side, all business items can reduce the taxable...
Words: 1038 - Pages: 5
...Sole Proprietorship- a business that is owned and operated by one person. There is no legal distinction between the business and the person. • Liability-Legally, there is no distinction between the business and the proprietor. The proprietor has complete financial responsibility for all debts incurred by the business. Thus, creditors can go after a proprietors personal assets. • • Income taxes- All income from this business form is considered personal income, and sole proprietor will report the income on his/her personal tax filings. (Generally, this is referred to as 'pass through taxation.') In certain cases, and for certain things, the proprietor can reduce taxable income by charging off costs of doing business as expenditures. (Ex. Sole proprietors can deduct for depreciation of buildings and machines, but only for a certain amount of time.) • • Longevity/Continuity- In essence, the business and the proprietor are one. In most cases, when the owner gets sick or dies, the business is likely to suffer or end. • • Control- Proprietor has absolute control and responsibility of the business. The proprietor is able to make quick decisions, in regards to the business, without having to seek approval or follow set guidelines like corporate by-laws. • • Profit Retention- All profits go to proprietor. • • Convenience/Burden- This business form can be highly convenient for fast and fluid decisions regarding the business. The owner can expand operations or cut them...
Words: 1903 - Pages: 8
...LIT t Carlos Alvarez Student ID # 000224916 Western Governors University LIT1 Task 2 310.1.5-02, 11, 13 Situation A The Family and Medical Leave Act of 1993, states that all companies with 50 or more employees must offer an unpaid leave of absence to employees to take care of the birth or adoption of a child, personal, or family illness. An employee must have a minimum of 12 months of continuous employment or at least 1,250 hours on the job. Under the act, an employee may take up to 12 weeks off on an unpaid leave. In accordance to the act, the employee will be allowed to return to their previous job, at their previous rate. If for some reason their job was occupied, we must provide the employee with a different position at the same pay rate as their previous job. Our company currently employees over 75 workers; therefore, we must comply with act. We must also comply with The Family and Medical Leave Act of 1993 because the Employee A has been with the company for more than 12 months. The fact that his wife gave birth prematurely has no effect on the employee’s request. The request for Employee A to return to their previous job with their previous pay rate has been rightfully granted, because the employee meets the requirements stated in The Family and Medical Leave Act of 1993. If the position has been occupied, then we must give the employee a different position with the same pay rate. In regards, to Employee A’s request for the pay that was withheld...
Words: 1221 - Pages: 5
...LIT1: Task 310.1.2-01-06 Part A: Sole Proprietorship: is the most common business structure. The business is not a separate entity from the proprietor which makes autonomous. Liability - if you enter into a sole proprietorship, you have unlimited liabilities associated with your business. You will be liable to the full extent of your assets for any business liabilities. Income taxes - as a sole proprietor, when you file taxes, you would file it under your own personal income taxes. Sole proprietor do not have anyone withholding their taxes. You do have to keep me in mind that as a sole proprietor you are responsible for budgeting you tax liabilities. Continuity of the organization - as a sole proprietor, when you die, the business dies. Control - as a sole proprietor, you have total control of the business. As the sole owner, you do not share any responsibilities with anyone else. Profit retention - as a sole proprietor, any profit made from the business would only be distributed to the sole owner. There are not partners associated with sole proprietorship. Expansion - as a sole proprietor, you have autonomy or flexibility with your business. Since sole proprietors are not seen as legally separated from their business, the ease of expansion is uncomplicated. Compliance - there are minimal reports you have to file with the government and there is no restrictions on the operations of your business. General Partnerships: is a partnership that is formed with two...
Words: 1827 - Pages: 8
...Sole Proprietorship The business structure that is owned by a single person is called Sole Proprietorship. In this model, the owner has many advances such as, having full control of the company, receiving all profits, and tax benefits. However, on the other side, the owner has full and sole responsibility, and the funds and resources are limited due to the owner is the only one putting the money into the company. Characteristics of Sole Proprietorship Income Taxes – The business owner is required to pay federal income tax as an individual. The yearly tax form is filled out with the information required based off the company’s income. Liability – The owner is solely responsible for the company’s commitments and debts. However, since there is not separation of personal and business assets the owners personal possessions are at risk as well. If something were to happen with a client, they could go after not just the business but the owner’s personal possessions too. Control – In this model the owner has full control of the company and does not have to give control to any other. Profit Retention – The profits of this model go solely to the owner. This is due to the owner and the company is being single entity. Location – This model allows the owner to expand or relocate the company without approval from other. This choice is allowed since the owner is the only person in control. Burden / Convenience – Due to the full responsibility falls on the owner, they are required...
Words: 2290 - Pages: 10
...Sole proprietorship: A sole proprietorship is a business organization, which is owned by a single individual. The individual makes all decisions for the business without having to consult with other employees or departments. There are many advantages in sole proprietorships. First off, sole proprietorships are easy to create. The owner simply starts doing business by providing goods or services and charging for the goods and services provided. In addition, the owner makes all decisions concerning the business and how it is operated. Another key advantage is complete autonomy, meaning the owner can set his or her hours of operation and utilize the finances. Sole proprietorship can only have one owner, meaning it is impossible to bring in others into the business, also if the owner dies or passes away the business does the same. It can be difficult to raise capital for a sole proprietorship. In most cases, if the entrepreneur is not wealthy, he or she will need to seek funds from outside source, for example a bank where they will treat the funds as a personal loan. • Liability: A sole proprietorship has unlimited liability, which means the owner is personally liable for any and all obligations and debts of the business. Creditors have access to all personal assets, meaning, personal homes, bank accounts, automobiles etc. are all within reach for creditors. • Income Taxes: A sole proprietorship pays income taxes on the business income, which is reported on the owners...
Words: 732 - Pages: 3
...Sole Proprietorship: Liability: The entire enterprise and all resources are owned and controlled by the owner. Any debts of the enterprise are the owners debts and must be paid from the owners personal funds. The proprietor is infinitely liable. Income Taxes: The proprietor must pay self employment tax. The business is will not be independently taxed and any income or lack of income must be reported on the owners tax return. The companies earnings must be taxed as well. Longevity or Continuity of the Organization: Considering most of the Owners funding comes from their personal assets, Sole Proprietors usually have a limited longevity. This can also affect the business’ future growth. Control: The owner is in full control of the company. The owner has all the power in the running of the business. Profit Retention: Legally the company and the owner are the same so any earnings the company makes belongs to the Sole Proprietor. Sole Proprietorships usually leave the owner with the most profit. Location: Sole Proprietorships hardly have any location regulation. Some area laws do require a DBA certificate. This certificate can be obtained through the county clerk’s office typically. Convenience or Burden: a sole proprietor is in full control of the company, selling of, or transferring company ownership is at the owners full discretion. There are no corporate taxes. Investors normally do not invest funds into these companies due to the lack of corporate structure...
Words: 1575 - Pages: 7
...Irish emigration across the Atlantic began long before 1800. In the 1600s, approximately 25,000 Irish Catholics left – some were forced to move, others left voluntarily – for the Caribbean and Virginia, while from the 1680s onwards Irish Quakers and Protestant Dissenters began to depart for the New World. Considerable Presbyterian emigration from Ireland's northern Province of Ulster took place from the 1710s onward, alongside smaller Anglican Protestant and Catholic emigration from Ulster and the southern province of Munster. This pattern continued until the end of the Napoleonic Wars in 1814. Ireland had benefited considerably from price rises associated with war on the European Continent, only to suffer as a result of the drop in export price levels following the Battle of Waterloo. From 1815 to the start of the Great Irish Famine (1846–1852), between 800,000 and one million Irish sailed for North America with roughly half settling in Canada and the other half settling in the United States. Significantly, no other European country contributed as many emigrants per capita to the New World as Ireland during this period. Until the early 1830s, Protestant departures exceeded the number of Catholics leaving Ireland. Thereafter, Catholics greatly outnumbered Protestants. The demise of the cottage spinning industry in the first half of the 19th century – especially from the early 1830s onwards – led to a massive displacement of workers. Nonetheless, the rise of the linen industry...
Words: 1704 - Pages: 7
...TASK 1 (PART A) LIT 1 SOLE PROPRIETORSHIP: The owner and the business are considered one. The owner takes all the risk and receives all the profits. It is easy and inexpensive to start up a sole proprietorship however a sole owner has trouble raising capital which could limit growth. • LIABILITY –If the business fails the owner is financially responsible and my lose everything. • INCOME TAXES – The proprietor and the business are taxed together. • LONGEVITY/CONTINUITY – The business dies with the sole proprietor. • CONTROL – There is no boss the owner has total control over the operations. • PROFIT RETENTION – All of the profits are considered personal income of the sole proprietor. • LOCATION – The owner can move or expand the business as they see fit they are easy to set up and work in any setting appropriate for the business. Most sole proprietorships are home based or have small offices and storefronts. GENERAL PARTNERSHIP: is a business owned by two or more owners. In General partnerships each partner is fully active in the firm giving input in management and each partner is fully liable for the debts of the business. • LIABILITY – Each partner assumes unlimited liability for the debts of the business and can be held totally responsible for debts and malpractice committed by any of the partners. • INCOME TAXES – A partnership is a pass-through entity, not a separate taxable entity, and no federal income tax is imposed on the business itself. Each partner...
Words: 1231 - Pages: 5
...LIT1 - Task 2 Mark J. Fortenberry May 9, 2015 LIT1 - Task 2 Company X has reported three situations that have occurred that require investigating. Since employment and hiring practices are a part of my duties here at Company X, I have been charged with the investigation into these situations. In the subsequent report, the laws that companies must abide by will be outlined and how these laws affects the outcome in each of these three situations. The Family and Medical Leave Act of 1993 is one that ties in heavily to the first situation. “The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year” (Solis, N.D.). This leave must be for the birth and care of a newborn, placement of an adoption, to care for an immediate family member, or for an employee that has a serious health condition. For qualification, an employee must have at least 12 months of continuous employment with 1,250 hours worked within that 12 months. This issue involves said Company X and an employee that will be identified as Employee A. Under the FMLA, both company and employee must meet the requirements under the law. As an example, Company X must have at least 50 employees, while in reality, the company has over 75 employees. Employee A needs to have worked for Company X for at least 12 months and at least 1250 hours within that 12 months; the employment length for Employee A has been 24 months and met the hourly...
Words: 1452 - Pages: 6
...Part A. In the past five years, children’s literature has had many common themes. Bullying has been a popular subject of interest at all levels of reading. This trend reflects a rising concern about cyberbullying and the sometimes dramatic effects it can have on a child’s life. Writers and parents are making an effort to show children that what they do to their peers has real consequences and to be mindful with their words and actions. Another popular subject is dystopian futures. This interest is in part due to the success of The Hunger Games trilogy, children have become interested in the future of their planet. Another interesting trend in children’s literature is mixing of genres, such as mixing cartoons and novels, which may be the influence of children’s television. Children are interested in seeing the story unfold as well as reading the text. This also is influenced by the prevalence of the internet and the multimedia presentations of information that is abundant there. Children are also very interested in serial literature, willing to follow their favorite characters through many books to find out all of their adventures. Here, again, televison may play a part in this interest. In the 1700s, the intent of many children’s books was to educate and instruct them morally while amusing children so that they would continue to read. Books that were made specifically for children were illustrated and often made in small sizes to fit into children’s hands. Today’s literature...
Words: 2361 - Pages: 10
...Task 1 Situation A The Family and Medical Leave Act of 1993 has many provisions but 3 major ones are that all employees of an organization of 50 or more employees working more than 20 hours per week be given a minimum 12 weeks of time off for domestic responsibilities each year. Those responsibilities include; the birth of a new child, the care of an immediate family member with a serious medical condition or the adoption of a foster child (US Department of Labor). Under the Act the employer must maintain the employees’ health insurance and employment status during that time frame. If the employee’s current position is no longer available a position of equal pay must be found. To qualify, the employee must have worked for the organization for 12 month and have worked 1250 hours in the 12month preceding the leave. The Family and Medical Leave Act of 1993 does apply to Situation A in almost every aspect except for one, the paid leave portion. In situation A, the employee was given 11 weeks off from work after being employed for 2 years for the birth of a child. Upon returning to work after 11 weeks the employee was given his job back and at the same rate of pay. The Family and Medical Leave Act of 1993 require that unpaid leave be given and the employee me be given up to 12 weeks off in a 12 month period or 26 weeks for the care and/or return of a veteran. In situation A, No violation occurred because The Family and Medical Leave Act of 1993 states that the employee was...
Words: 903 - Pages: 4
...SITUATION A Issue For Review: Employee A requested to be paid for his 11 week LOA. Management denied request. The Family and Medical Leave Act of 1993 (FMLA) The Family and Medical Leave Act (FMLA) is a U.S. federal law which requires employers to provide eligible employees at least 12 weeks of unpaid, leave of absence (LOA) time for certain qualifying medical or domestic reasons. The mandates of FMLA guarantee that the returning LOA employee will be reinstated the same or equivalent position, job duties, rate of pay, and benefits they held prior to taking leave. Covered Employers Eligible Employees • Private Sector Employers - Any business with 50 or more employees who have worked for 20 or more work weeks within the current -or last- calendar year. • State/Federal Agencies • Labor Unions • Employment Agencies • Employee must work for a federally recognized covered employer. • Employee has a minimum 12 months of service for employer; prior to a LOA, employee must have accrued service hours which total 1,250 or more. • Employee reported to a main work location which has a minimum of 50 employees within a 75 mile radius. Qualifying Reasons For FMLA: Serious Medical Condition - The employee cannot perform their job duties due to serious health issues. Military Service - Hardship resulting from spouse, child, or parent who is an active member of the military and is called into active service / deployment. Family Health Condition - Employee must care for...
Words: 1444 - Pages: 6
