Lit1 Task 310.1.2-01-06 Essay - 2863 Words

Part A (The report) Part B (The memorandum) Student Name Western Governors University Part A (The report) Determining what type of business venture to either start or invest in can be challenging. Over the next several pages we will evaluate the various types of business organizations and at the end of this report; you should have an initial or better understanding of the different types of business forms. Sole Proprietorship: The word proprietorship can sound intimidating. It is important to remember that most things are simplified with knowledge. If your business is a sole proprietorship then you as an individual are the owner and operator of that business. This means the sole proprietor handles everything from setting up†¦show more content†¦Ã¢â‚¬ ¢ Control: A sole proprietor has total control of the company and they make all the good decisions and they must deal with decisions that did not turn out the way they intend. The other notable factor in being a sole proprietor of a business is what would happen to the business if the owner became ill or died; typically the business would stop operations based on the structure and debts would need to be resolved as well as customer commitments would need resolving based on the type of business. †¢ Profit Retention: In addition to reaping the profits from the business, the sole individual is also responsible for all debts in curred and for paying expenditures of the business. †¢ Location: In addition to federal laws that govern business a sole proprietorship is governed by the state laws in which it operates. If the proprietor opens another business location in a different state. The new state laws will govern the other business location therefore requiring the proprietor to understand and be compliant with more than one state laws based on the location of the business. (Beatty Samuelson, 2007, pp. 755-756) General Partnership: Occurs when two or more individuals get together to operate a business with the intention of making profit. Each individual is a general partner of the business and all profits and losses are shared between the partners. General partnership agreements can be a written or verbal agreement. †¢Show MoreRelatedLit1 Task 310.1.2-01-062176 Words   |  9 Pages1      Part A Sole Proprietorship A sole proprietorship is a form of business that is owned by a single individual.   †¢ Liability – Due to the lack of legal distinction between the owner and the business, the owner is fully responsible and liable for all debts that the business incurs in the same manner that an individual is fully responsible and liable for all debts that they incur. There is no legal distinction between the assets of the owner of the sole proprietorship and the business; thisRead MoreLit1 Task 310.1.2-01-06 Essay examples1487 Words   |  6 PagesLIT1 Task 310.1.2-01-06 Part A Sole Proprietorship - †¢ LIABILITY – There is no separation between the individual and the business. As the owner and operator of a sole proprietorship, all of the profit and loss is the personal responsibility of the business owner creating unlimited liability. †¢ INCOME TAXES – As a sole proprietor all business income or losses must be reported as personal income tax. The business itself is not taxed separately. †¢ LONGEVITY/CONTINUITY – The sole proprietorshipRead MoreWGU LIT1 Task 310.1.2-01-063823 Words   |  16 PagesPart A (The Report) Sole Proprietorship A sole proprietorship is the most common form of forming a business in the United States. The individual that forms the sole proprietorship and the business is one in the same. For example, if the business owes creditors money, the individual who created the sole proprietorship business has to pay the bill. When entering into contracts the individual is actually agreeing to the contract since the person and business is one in the same. The biggest advantageRead MoreEssay about Lit1 Task 310.1.2-01-062862 Words   |  12 PagesSole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal, and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments, the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments, and personallyRead MoreStudy Notes for Task 11269 Words   |  6 Pages†ºAdd account Sign out Settings LIT1 Task1.pdfAdd to DriveEdit onlineDownload originalShareFileViewHelp SUBDOMAIN 310.1 - BUSINESS LAW Competency 310.1.2: Organizational Forms - The graduate can select the appropriate form of organization for a business. 310.1.2-01: Differentiate between a sole proprietorship and general partnership. 310.1.2-02: Differentiate between a general partnership and a limited partnership. 310.1.2-03: Identify the distinguishing characteristicsRead MoreLit1 Task a Essay1390 Words   |  6 PagesLIT1: Task 310.1.2-01-06 Task A Sole proprietorship 1. Liability * An owner has unlimited liability both personally and as the company owner. Liability is a disadvantage in a sole proprietorship. 2. Income taxes * The owner is responsible for filing taxes and is allowed to file taxes as part of their personal income taxes. 3. Longevity * This depends completely on the owner and there continued ability to operate the business. The operation of the business can be significantlyRead MoreSample Resume : Business Management1551 Words   |  7 PagesNatasha Rodas LIT1 Task 310.1.2-01-06 Part A Sole Proprietorship – As a sole proprietor, you own your business solely; no other interested parties are involved. †¢ LIABLITY – The business is controlled and operated solely by the individual, and all profit/loss is the responsibility of the business owner; creating unlimited liability. †¢ INCOME TAXES – All business income/expenses are to be reported as personal income tax; not taxed separately. †¢ LONGEVITY/CONTINUITY – Once the business owner is