...Course Project Developing B2B and B2C types of e-commerce at Midea Corporation Abstract This project discusses that what e-commerce can do to help Midea gain more profit or reduce the spending. In China, most of the IT technologies that customers use are at the initial stage. The development of the Internet is just at the beginning. Therefore, customers can’t make an order for what they want only by viewing the company’s homepage. As the leader in the area of Chinese household appliances, Midea should play a leading role to run the e-commerce which is good for running the business. This project says that how Midea finds out its problem and deal with it by e-commerce. Brief Company background Midea which produces the home appliance, mainly involved in the field of logistics and other large-scale comprehensive modernized enterprise was established in 1968. What is more, it has four industry groups, therefore it is China's largest home appliance production base and export bases. In 1980, Midea officially entered the home appliance industry. Currently, there are 130,000 employees are hired by Midea. Looking to the future, Midea will continue to adhere to the effective, harmonious, scientific policy of development, in order to form the industrial diversification, the development of large-scale, business specialization, regional operations and management of differentiated of industrial pattern. Moreover, it strives to establish a healthy financial structure and enterprise...
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...Values and Ethical Decision Making May 26, 2011 Values and Ethical Decision Making From the day we are born we are taught to walk, talk, think for ourselves, shown the difference between right and wrong, and hopefully learned the proper way to treat people. These things that are ingrained in us from birth are a culmination of what society as a whole deems acceptable and unacceptable. But also reflect individual preferences brought on by personal experiences we ourselves or our ancestors had that mold or contort what we feel about certain subjects. It’s human nature to seek out those with the similar attributes and form bonds with those people, whether it’s on a personal or business level. Personal Values In order to truly understand where one sits in many of their personal values, they must take into account many factors including, age, sex, religion, sexual orientation, region you live in, and so forth. The culture in which you are raised has a value system in place, possibly hundreds of years. The things looked upon as acceptable behavior can vary greatly from one place to another. Personal values stem from a broader source, first you have society’s values and beliefs in the culture you are raised, adding to that your parents have their own set of values and beliefs they carry with them. Personal values are the driving force influencing everyone’s actions and reactions (Raj Soin College of Business). And as we grown and progress in life we take these values into...
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...14-24 what is the purpose of the dividends-received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? A dividends received deduction is a specific term in US federal regulations on income tax. It refers to a deduction granted to a corporation to cover dividends received from another corporation that it partly owns. As a result, it is a rare example of a deduction applied to money that has been received by the taxpayer, rather than spent. The purpose of the dividends received deduction is to limit the effects the same money being taxed repeatedly. US policy does allow for double taxation, which is the circumstance by which a company's profits are taxed and then shareholders are taxed on the dividends they receive from the company's post-tax profits. Without the dividends received deduction, there would be an extra layer of taxation: tax would be taken from a corporation's profits, the dividend paid to a second corporation with an ownership stake in the first corporation, and the dividends paid by the second corporation to individual stockholders. Source: http://www.wisegeek.com/what-is-a-dividends-received-deduction.htm 14-51What is the purpose of the reconciliation of taxable income with book income? Generally, Sec. 446 requires taxable income to be computed under the same method of accounting as the taxpayer uses for its books. However there are differences in the accounting method used for GAAP versus tax.....
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...opening a business is deciding what type of business structure will be best for the type of business that is being opened. There are five different types of business structures. Sole Proprietorship This type of business structure is owned solely by the owner and no one else. Sole proprietorships are also unincorporated. This means that the owner is at total liability for their business. Being unincorporated also means that the owner is taxed; the business is not taxed separately. Although one of the up sides to this type of business structure is that the business is run completely the way the owner wants to run it, they only have to answer to government and state regulations. Another upside is that it is the cheapest business structure to form. Partnerships A partnership is when two or more people come together to own a business. This type of business is also unincorporated which again means that the owners are at total liability. The taxation for the business is also done through the owners; each owner includes their share of the business’ gains or losses in their tax returns. Having partners has its pros as there are more people to share in the liability and more people to help make the big decisions with. Partners also bring a balance in ideas, help the group see the pros and cons of each decision to be made. Corporations A corporation is formed by gaining shareholders in order to gain the corporations capital stock. A C corporation is treated as a separate entity when...
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...Questions: 14-24 and 14-51, 17-1 and 17-24 Problems (Show your work.): 14-52, 17-40, and 17-49 Chapter 14: 24. What is the purpose of the dividends received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? The tax deduction received by a corporation on the dividends paid to it by companies in which it has an ownership stake. Generally Corporation pays taxes on its income before distributing dividends. So if this deduction is not allowed the corporation paying dividend pays taxes, the corporation receiving dividends pays taxes on it again and the shareholders receiving this pays tax again so it leads to triple taxation. U.S. corporations are generally entitled to a deduction for dividends received from certain other domestic corporations. If the recipient corporation owns less than 20% of the distributor's stock, the recipient corporation is allowed a deduction of 70% of dividends paid out of distributor's tax earnings and profits (E&P). When the recipient of the dividend has at least 20% but less than 80% ownership by vote or value in the distributor, an 80% DRD is allowed under Sec. 243(c). Finally, Sec. 243(a)(3) allows a 100% deduction for "qualifying dividends," when a corporation receives dividends from another corporation that is a member of the same affiliated group. 51. What is the purpose of the reconciliation of taxable income with book income? Generally, Sec. 446 requires taxable income to be computed...
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...Business Structure Types for Forming a Business Business Law/LAW 531 Business Structure Types for Forming a Business When I person decides to be an entrepreneur, choosing the type of business structure that would be right for the business they plan to open can be a daunting task. The reason is being is that there are many different types of business structures a person can choose from. Before making the decision on the type of business structure for the business, there are a few things that should be done before hand. The entrepreneur would first need to have a business plan that will guide them on how they would start the business and run it successfully. Next they should get any necessary assistance or training on how to go about forming a business. Once this has been done, a business structure can be determined after researching each type of structure to see which would fit their business idea the best. In the process of starting a business, choosing the type of legal business structure for a business will be one of the most important tasks a new entrepreneur will do. The reason is that whichever structure is chosen will have an impact on items like taxes the entrepreneur will pay, the amount of paperwork required for the business structure picked, the personal liability the business will have, and the ability to raise the money for the business structure picked. When going forward with the formation of the business, a person will have to know...
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...to avoid triple taxation that’s allowing corporation to pay dividends to its shareholders without being taxed for the third time. Domestic corporations and dividends paid by the domestic corporation are entitled to the claim of dividends-received deduction. 14-51 ANS The net income on its financial books of a corporation my differ from the taxable income on its return and reconciliation is used to reconcile the difference. 14-52 ANS a) Realized gain but unrecognized ($27,000-$15,000=$12,000) Basis of $15,000 b) Recognized gain of $2,000 ( $3,000-$1,000) Basis of $1,000 c) $10 per stock *900 shares =$9,000 Basis of the stock is $15,000 less $9,000 (shares of 900*$10 per stock) gain of $6,000 to the corporation ($15,000-$9,000) Basis to the corporation of the property received is $15,000 d) $10 per stock *100 shares = $1000 Basis of stock is $1,000 less $1,000 (100 shares*10) no gain or loss ($1,000-$1,000) Basis to the corporation of the property received is $1,000 17-1 ANS Seven types of corporate reorganization Type A reorganization is a form of consolidation or merger that meeting state law requirement. (Reg. 1.368-2(b)) Type B reorganization is a form of reorganization used to acquire asset and stock of Target Corporation. Type C reorganization is a form of reorganization that the corporation acquiring the target corporation exchanges the massive acquisition of the target corporation for its voting stock. Type D reorganization is a form of reorganization...
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...proper business structure of the company as each type of business structure will have its own legal and tax implications. The types of business structures include sole proprietorship, partnership and corporation. Sole Proprietorship A sole proprietorship is the most common type of business in United States. This type of business typically consisting of the proprietor and a handful of employees. In Sole Proprietorship business type, the owner of the business is entitled to all profits and handles all your business’s debts, losses and liabilities. The advantages of Sole Proprietorship include complete control of the business, Ease and inexpensive to forming the business and easy tax preparation as Sole Proprietorship is not taxed separately. Disadvantages for this type of business include unlimited personal liability, hard to raise capital and heavy burden as you handle success or failure of the company. Partnership A partnership consists of two or more owners who have joined legally to manage a business. Partners of the business contribute to all aspects of the business, including decision making and raising money for the business. To form a partnership business, all owners enter into an agreement with all the roles and responsibilities of each owner. They also agree on how profits are shared and how ownership will be transferred in case of specified events, such as the retirement or death of a partner. There are two types of partnerships general partnership and limited...
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...from. You do have several options to choose from, and each of them have both advantages and disadvantages. Some of your options include several types of corporations, partnerships, and sole-proprietorship. The first possible business structure is one of the types of corporations. The General Corporation is the most common type of corporate structure. The characteristics of a general corporations include being a separate legal entity, owned by stockholders (an unlimited number), that are protected from business creditors. One option is a type S Corporation, which is actually a type of General Corporation that has a special IRS tax status. It is popular with small businesses because they are charged as if they are sole proprietors, as well as combining tax advantages of a sole proprietorship with that of a corporation. Depending on the type of business you plan on starting, this may be an option for you. An advantage of the corporation is that the individual’s personal assets are protected. A disadvantage is that you have to share the profits with all of the stockholders. Another type of business structure that you could form is a Limited Liability Company, or LLC. There are fewer restrictions and compensation requirements than that of a Type S Corporation. These are popular because they are among the easiest structure types to attain, and also offers a protection of personal assets that are not present with a sole proprietorship. The LLC’s owner reports profit and...
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...Pros & Cons of the Different Legal Structures There are three main types of firms, which include: sole proprietorship, partnerships, and corporations. When starting a business, it is very important to weigh out the pros and cons of each type to decide which type would be best suit your particular business. Each type has its advantages and disadvantages that need to be considered before deciding which would be best moving forward. I will discuss the advantages, disadvantages, and differences of each type of firm. First, there is a sole proprietorship. “A sole proprietorship is someone who owns an unincorporated business by himself or herself.” (IRS.gov, 2016) This type of firm is the easiest to set up and the simplest of the business structures. It is by far the most popular because of its advantages. Some of these advantages include: ease of formation, least amount of record keeping, minimal regularly controls, and advantage of double taxation. With these great advantages comes a huge disadvantage, which is, there is no legal distinction between the assets and liabilities of the business and those of its owner. In a sole proprietorship you may reap all the reward from financial benefits, but you are solely responsible for all business risks involved. In a sole proprietorship if the business fails then that one individual stands to lose all personal assets and other possessions. The second type of business is a partnership. “A partnership is a single business where two...
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...Types of Legal Ownership Amanada Moore June 8, 2016 Introduction to Business in a Technology World Heather Montgomery Argosy University Types of Legal Ownership Ownership Structures | Sole Proprietor | General Partnership | Limited Liability Company (LLC) | Corporation | Number of Owners | One | Two or more | One or more | Multiple | Formation Difficulty | Low | Low | Medium | Medium/High | Liability | Sole proprietor has unlimited liability. | Partners have unlimited liability. | Members aren’t typically liable for the debts of the LLC. | Officers/shareholders are not typically responsible for the debts of the corporation. | Operational Requirements | Relatively few legal requirements. | There are relatively few legal requirements. | Some formal requirements, but less formal than corporations. | Formal board of directors, annual meetings, and annual reporting required. | Management | Sole proprietor has full control of management and operations. | Typically each partner has an equal voice unless otherwise arranged. | Members have an operating agreement that outlines management. | Managed by the directors, who are elected by the shareholders. | Federal Taxation | Not a taxable entity. The sole proprietor pays all taxes. | It is not a taxable entity. Each partner pays tax on his/her share of income and can deduct losses against other sources of income. | Depending on structure, there is no tax at the entity level. Income/loss is passed through to members...
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...assets. The business owner is solely liable. • Income Taxes: The owner of the business and the business itself are considered to be the same entity, the owner of the business reports expenses, loss, and income via schedule C and a standard 1040 tax form. • Longevity: The business will remain in operation until the owner decides to close it down permanently. Another way the business will cease to exist is if the owner ceases to exist, or dies. • Control: Under a Sole Proprietorship, the owner of the business retains full control of it unless he/she designates someone to act on his/her behalf. Typically, the owner makes all business decisions and full control is ultimately his. • Location: The location of this type of business is...
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...Business Organizations Task 1 Part A 1. Sole proprietorship: This type of business is known to be the easiest business for an individual to develop. A sole proprietorship is owned by one person, who is the person that will make the decisions in regards to the business and does not share any responsibilities with anyone else as the business owner. • Liability: One person is liable for the debts of this type of business, this will include their personal assets if necessary. • Income Taxes: Sole proprietorship is taxed as a single unit. There is no separate federal return needed for taxes. • Longevity or continuity of the organization: If something tragic were to happen to the owner of a Sole proprietorship, the business will die as well. However, now there are insurance policies to assist the family in the event the business owner becomes deceased. • Control: The person to initially start the business is in control. This person usually takes on multiple management positions such as finances, and sales. • Profit retention: All profits from this type of organization belong to the sole owner of the business. • Expansion and Location: Expansion and relocation of a Sole proprietorship is not generally recommended due to the limited resources the owner may have. • Compliance, Convenience, and Burden: This type of business is generally simple, and inexpensive to start, thus it is the easiest and most common type of business. 2. General Partnership: A general partnership is when...
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... in a sole proprietorship always will be the owner. However, the owner is free to consult to whomever he/she likes. • Unlimited Liability -‐ The liability of the sole proprietor is unlimited. This implies that, in case of loss the business assets along with the personal properties of the proprietor shall be used to pay the business liabilities • Direct Motivation – Since the profits earned goes directly to the owner there is a greater motive to perform. • Ease to form and dissolve – Since the business is not a corporation it is fairly easy to startup and dissolve. • Taxation – The owners conduct a pass through taxation in which the income is reported on the owner’s personal tax return. • Longevity – A sole proprietorship exists as long as the owner is living or until the owner decides to close the business. • Location – The owner has...
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...Legal Forms of Business Introduction The different forms of business include sole proprietorship, partnership, limited liability company, S corporation, franchise and corporate form. However, depending on the type of business and the number of individuals involved in starting the business can determine what the best form of business to suit the organization. The advantages and the disadvantages must be weighed and thought out carefully in order to minimize risks and possible litigation issues that could arise. A sole proprietorship is the most basic business form and is frequently utilized by a single person owning or running a business on his or her own. Such business enterprises are often run from the person's home. Owners pay taxes on the business profits and this is reflected on individual tax returns (Form 1040 and Schedules C and E). In some states, the costs of a business that is being operated from an individual's home may be deducted from income taxes. However, at the same time, certain counties and states may require a sole proprietor to pay property taxes on the value of any office equipment used for the business. In addition to tax liabilities, sole proprietors are also responsible for the debts of the business (Types of Business Organizations, 2008) If an individual wanting to begin a small mobile food cart business forming a sole proprietorship may be the best alternative. The sole proprietorship business form for the individual would...
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