Business Organization
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BUS 357
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Feb 20, 2024
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1
Business Organization
Sophie Mukasa
The University of Arizona Global Campus
BUS 311: Business Law Instructor James Hughes
November 06, 2023
2
Entity Structure
I currently own an Event Planning business and it is registered as a Limited Liability Company (LLC). If I were to do it all over again or start another business, I would choose LLC again mainly because it has many advantages over other forms of business types. Rogers, S., & Seaquist, G. (2023)
, but most importantly for me, given the type of businesses I am into, LLC makes it easier because I can have different entities under the same LLC Umbrella and can also allow tax breaks given the fact that the type of businesses, I have are prone to loss. This paper will explain the different types of business structures and discuss in detail the steps to form, personal liability for owners, taxation, advantages and disadvantages. Sole Proprietorship
This is the most popular organization in the United States because it is relatively simple. It is limited to one owner, who both owns and operates the business. According to Forbes Advisor (2023) The steps to form a sole proprietor ship are simply; creating the name, registering
company name with state and applying for EIN. One of the advantages about this type of organization is that the owner gets to be in control and make decisions without having to consult with anyone else first. On the other hand, it could also be a disadvantage because all responsibilities of running the company fall on one individual which can get overwhelming not to mention that all liabilities lay on one person’s shoulders i.e if there’s any injury resulting to a lawsuit, fines are taken out of proprietor’s personal assets Rogers, S., & Seaquist, G. (2023)
,. As far as taxes go, the sole proprietor reports earnings as a personal income which allows them to be
taxed at a personal rate but the disadvantage of this, the business deductions offset most of the income.
3
Partnerships
In a partnership, each partner is a principal of the business and has equal rights in the business. The steps to form a partnership are similar to sole proprietor formation. According to Rogers, S., & Seaquist, G. (2023)
, first, both partners decide on the name, file a doing business certificate, and acquire an EIN by filing an application with the IRS. One of the advantages is that liability is shared between the partners as well as the tax obligation. It is worth noting that when entering into a business partnership, it is very important for all partners to sign a written agreement because it will make it easy to make decisions should there be a change in interests amongst the partnership. Without an agreement, things can get very ugly if there was to be any misunderstandings. Limited Liability Company (LLC)
As stated earlier, LLC has the most advantages over other organization types because there’s minimal limitations. It can be formed with one person and can also be formed with more than one person or companies. A significant tax difference is that an LLC allows for the deduction of operating losses against income Rogers, S., & Seaquist, G. (2023)
,. Unlike other organization types, in an LLC liability and debt is a responsibility of the business and not of the owners. C Corporation C corporations are legally considered a person so when it comes to liability, the corporation may be liable Rogers, S., & Seaquist, G. (2023)
,. Formation of a C Corporation is more complicated than other organization types because it requires filing complicated documents
with the state which is a disadvantage but a more significant disadvantage is the double taxation
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Related Questions
2
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I need answer typing do not use chatgpt
12. Situation in which new business reduces an existing business of firm is classified as. A. non-cannibalization effect B. cannibalization effect
C. external effect
D. internal effect
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Mo.
Outcomes:
Discuss the issues that entrepreneurs should consider when evaluating different forms of ownership.
Describe the advantages and disadvantages of the sole proprietorship, partnerships, and corporations.
Describe the features of the S corporation and the limited liability company.
Discuss the alternative options for corporate forms, both for-profit and non-profit, available to social entrepreneurs.
2.2 Action Required:
Watch the short video at the following link
https://www.youtube.com/watch?v=0k8ljlnBAQIT News) - YouTube
2.3 Test your Knowledge (Question):
What is a sole proprietorship? What drawbacks should be considered?
2.4 Instructions
Answer the question available in the “Test your Knowledge” section.
Post your answer in the discussion board using the discussion link below
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Entity FormationCarla plans to open Carla’s Pets Store, a pet sales and pet supplies outlet, and to hire Quimby and Ruth. Carla will invest only her own money. She does not expect to make any profit for at least two years and to make almost no profit for the first three years, but she hopes to expand eventually.
· Which form of business organization would be most appropriate?
· What are the main characteristics, advantages, and disadvantages of this form of business organization?
· If Carla wants to obtain additional capital to expand the business, but does not want to lose control of the company, what is her best option?
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Mustafa Computer Supplies LLC is
selling computer accessories for
wholesale and retail business. Which
of the following is False Statement?
а.
Mustafa Computer Supplies LLC is a
merchandise business
b.
Mustafa Computer Supplies LLC is
doing a retail business
С.
000
Mustafa Computer Supplies LLC is a
doing a manufacturing business
d.
Mustafa Computer Supplies LLC is
doing a wholesale business
10:10 am
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4
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None
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Carefully study the board of directors of the firm. what is the effectiveness of theboard. Explain clearly for me please. What is the advantage of having an effective board?
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Adel is planning to start new business by investing an amount of R.O 11000 afetr graduation. he doesnot want to join his brother comapny. Identify the type of business.
a.
Partnership
b.
Limited Liability Company
c.
None of these
d.
Sole Proprietorship
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V. What are the main components of a business partnership agreement?
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(TCO 3) Cardinality is
Group of answer choices
the minimum and maximum number of instances associated with one instance of a related entity.
the classification of a relationship as one-to-one, one-to-many, or many-to-many.
the strength of the relationship between two entities.
the number of attributes of an entity.
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4. Managing Knowledge and Artificial Intelligence (LO 2, 3 – 20%)
The pandemic that has occurred over the past 2 years has not only had a negative impact but also a positive impact. We can see that since the onset of the pandemic, the entire business world must move quickly to adapt, especially in the field of technology in order to survive. Knowledge & Artificial Intelligence has become an important key in the success of a company. Please study, explain and provide at least 3 (three) examples of tangible evidence of the benefits of using knowledge & artificial intelligence in the following fields!
a. Health Industry
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44-Why would someone put up a sole proprietorship?
To enjoy all profits that can be made from the business
To take control of all the aspects of the business
All options are correct
To make all decisions regarding the business
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75) What governance are in place to ensure the interests of the principals and the agents stay aligned?
Board of Directors
Shareholder Activism
Threat of Takeover
A and B
A and B and C
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Ouestion 1 and ouestion 2 only
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Activity 3. Examples of Business Organizations based on Ownership
DIRECTION: Using the internet, make aresearch about real names of business
organizations located in the Philippines and supply the necessary information
below (use extra sheet if necessary):
Form of Business
Name of Business
Name of Owner(s)
Organization
Sole
Proprietorship
Partnership
Corporation
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Which of the following is an advantage associated with a sole proprietorship?
Question 6Select one:
a.
Ease of transfer of ownership
b.
Retention of control
c.
Permanence
d.
Unlimited liability
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15.
The president of Good Fortunes, Inc., states at a press conference that the company has a 30-year history of ever-increasing dividend payments. Good Fortunes is widely regarded as one of the best-run firms in its industry. Does this make the firm's stock a good buy?
a) Yes, because good company stock is the most profitable one
b) No, since the company is stable and one of the best-run firms in its industry, it may not be a bargain
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2:18
40.0
Assignmen... o
Forms of Business Administration
Assignment
Unit - 1
1. What is Join Stock Company? Discuss its types in detail.
2. Explain the difference between Private and Public company.
3. Discuss MOA with its main clauses.
4. Explain the difference between MOA and AOA.
5. Discuss the formation of Join Stock Company.
Unit - 2
1. Discuss rights, liabilities and duties of company directors in brief.
2. Explain appointment and selection of directors in brief.
3. Discuss directors with its legal positions.
4. Who is company secretary? Discuss rights, duties and liabilities of
company secretary in brief.
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Suppose you work for a well-known local restaurant, and a friend ofyours is an account representative for a supplier of restaurant equipment. You know the restaurant owner is considering upgradingsome of the kitchen equipment. Although you have no purchasingauthority, your friend has asked you to arrange a meeting with therestaurant owner. You have heard unflattering rumors about thissupplier’s customer service.1. Would you arrange the meeting between your friend andyour boss?2. Would you mention the customer service rumors either toyour friend or your boss?3. Would you try to influence the purchase decision in eitherdirection
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C. Identify the Form of Business Organization being described. (a
1. Form of business organization with unlimited lives and the death or withdrawal of an
owner does not affect its existence.
2. The establishment is generally an easy and inexpensive process.
_3. The most important characteristic of this form of organization is always limited liability.
4. It involves a contractual agreement between all the partners that set the terms and
conditions of their business relationship, including the distribution of ownership, responsibilities,
and profits and losses.
5. This form of business organization generally enjoys fewer options to raise capital.
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10
True/False/Explain: “A wealth-maximizing individual would never pay to acquire a nonzero basis spread position that violates the LOOP.
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Which of the following is most likely a purpose of a cooperative? *
To lease or operate a profit-taking enterprise using the capital provided by the
members.
None of the choices.
To insure against losses of the members.
To develop expertise and skills of identified beneficiaries of the cooperative.
To acquire the lands of the members and convert it as housing subdivisions.
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12.3 Discuss the importance of corporations tothe U.S. economy.
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Q1. Discuss the restriction imposed by the Companies Act 2016 on a member’s right tovote. In addition, explain the voting by a show of hands and voting by poll under each circumstance during a company general meeting.
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Capstone analytical review of Chapters 2, 3, and 4. Calculate liquidity and profitability measures and explain various financial statement relationships for a realty firm DeBauge Realtors Inc. is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation’s stock.The following summarized data (in thousands) are taken from the December 31, 2019, financial statements: For the Year Ended December 31, 2019: Commissions revenue $426, Cost of services provided $177, Advertising expense $84, Operating income $165, Interest expense $15, Income tax expense $48, Net income $102. At December 31, 2019: Assets Cash and short-term Investment $90, Accounts receivable, net $120, Property, plant, and equipment, net $375, Total assets $585, Liabilities and Stockholders’ Equity, Accounts payable $270, Income taxes payable $15, Notes payable (long term) $150, Paid-in capital $60, Retained earnings $90, Total liabilities and stockholders’ equity $585. At December 31,…
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Question 1When does a corporation need a board of directors? your answers should not exceed 200 words
ReadingRequiredChapter 1. Corporate Governance Context: Constraints and ChallengesTextbook: Wheelen, T. L., Hunger, D., Hoffman, A. N., & Bamford, C. E. (2014). Concepts in strategic management and business policy (14th ed.). Upper Saddle River, NJ: Prentice Hall. ISBN-13: 9780133126129 (print), 9780133126433 (e-text)
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-What are the importance or significance of Entrpeneurship?(Give 8)
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3 differences between a company and a partnership
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Which of the lists of positions below are in the same order as these definitions: Managers of the day-to-day operation of the corporation; owners of the corporation; set strategy and policy for the corporation.
1. Board of Directors; Shareholders; Officers
2. Shareholders; Board of Directors
3. Officers; Shareholders; Board of Directors
4. Officers; Board of Directors; Shareholders
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9. Corporations can pay lower taxes than partnerships.
O True
O False
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Pls help ASAP
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(Question on Business Ownership ) What are the responsibilities and obligations of partners in a partnership form of business ?
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The following data was gathered during one of the recent audits of Cash Disbursement Section. One of the findings was on the outdated Delegation of Authority to policy. In preparing a report of the findings, identify the elements of an audit findings for each data (in order).
1. The delegation authority is updated biannually and not when changes in personnel or
responsibilities of authorized individuals occur. 2. The delegation of authority policy list three individuals who are no longer with the
company. Additionally, four individuals were identified who are new in their positions that should have disbursement authority, but are not listed in the policy.
3. Disbursements may be made that are not in accordance with management's or BOD's direction.
4. Authority over the disbursement of funds should only be delegated to individuals whose responsibility justify such authority.
O Cause, Effect, Condition, Criteria
O Condition, Effect, Cause, Criteria
O Cause, Condition, Effect,…
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- Entity FormationCarla plans to open Carla’s Pets Store, a pet sales and pet supplies outlet, and to hire Quimby and Ruth. Carla will invest only her own money. She does not expect to make any profit for at least two years and to make almost no profit for the first three years, but she hopes to expand eventually. · Which form of business organization would be most appropriate? · What are the main characteristics, advantages, and disadvantages of this form of business organization? · If Carla wants to obtain additional capital to expand the business, but does not want to lose control of the company, what is her best option?arrow_forwardMustafa Computer Supplies LLC is selling computer accessories for wholesale and retail business. Which of the following is False Statement? а. Mustafa Computer Supplies LLC is a merchandise business b. Mustafa Computer Supplies LLC is doing a retail business С. 000 Mustafa Computer Supplies LLC is a doing a manufacturing business d. Mustafa Computer Supplies LLC is doing a wholesale business 10:10 amarrow_forward4arrow_forward
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- V. What are the main components of a business partnership agreement?arrow_forward(TCO 3) Cardinality is Group of answer choices the minimum and maximum number of instances associated with one instance of a related entity. the classification of a relationship as one-to-one, one-to-many, or many-to-many. the strength of the relationship between two entities. the number of attributes of an entity.arrow_forward4. Managing Knowledge and Artificial Intelligence (LO 2, 3 – 20%) The pandemic that has occurred over the past 2 years has not only had a negative impact but also a positive impact. We can see that since the onset of the pandemic, the entire business world must move quickly to adapt, especially in the field of technology in order to survive. Knowledge & Artificial Intelligence has become an important key in the success of a company. Please study, explain and provide at least 3 (three) examples of tangible evidence of the benefits of using knowledge & artificial intelligence in the following fields! a. Health Industryarrow_forward
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