What Are The Advantages And Disadvantages Of A Business

A corporation is a separate legal entity that possesses distinctive liabilities and privileges than that of their members or shareholders. As an investor, a corporation’s advantage is liability for their own investments especially in risky investments (Kubasek, et al., 2012, p. 760). Among the various types of corporations for Betty to select from, an S corporation is an enticing venture for new entrepreneurs given that it grants limited personal liability for debts, sharing of corporate profits, and taxation relief. Double taxation is a main disadvantage of C corporations but not for S corporations. The General Corporation Law (Corp C §§100-2319) treats S corporations similarly to partnerships for taxation purposes.

a) a General Statement of commitment to H&S, signed by Head/Chair of Governors or indicating that it has been endorsed by the committee of the Governing Body which has responsibility for H&S;

The organizational forms a company might have as it evolves from a start-up to a major corporation are: sole proprietorships, partnerships and corporations. The advantages of a sole proprietorship are that is is easily and inexpensively formed; is subject to few government regulations and it’s income is not

income. In particular, the corporation has inquired whether the following benefits provided by the corporation to employees would be included in an employee’s taxable income:

] as an additional financial resource of the petitioner, in addition to the corporation’s ordinary business income, available to to pay the proffered wage to the beneficiary (Exhibit 1-AAO decisions). In support of this argument, the AAO may consider the following documents:

An organization performs certain activities because it is obligated to do so to avoid economic or legal ramifications. By paying

There are many other forms of business entities available to entrepreneurs, the main type are sole proprietorship, general partnership, limited partnership, limited liability company (LLC), and corporations.

2.3 Revenue (AASB 1004) Revenue is recognized to the extent that it is probable that economic benefits will flow to the Group, at the point where a right to consideration or

* It provides the mechanism that makes capital payment tp the shareholders (return of capital or capital distribution).

2. There’s a considerable risk that an employee will not turn-in the timesheet in a timely manner, and so will not be paid.

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

Sole trader-it’s a business that is owned by only one person and it can have one or more employees. This type of business organization often succeeds because the owner has total control of businees, the owner keeps all profit and it’s cheap to start-up,but also it can be difficult to raise financial,it may be difficult to specialise or enjoy economies of scale and can also have problems with continuity if sole trader retires or dies.

Entrepreneurship is an excellent opportunity for individuals seeking the independence of running their own business. Starting a business can be a quite daunting task for anyone who is looking to do so. Potential business owners must be ready to invest much of their time and energy to the planning and startup phases of their business. Those activities include conducting research, creating a business plan, securing financing and marketing. Additionally, business owners also have to decide the type of business form that they would like to operate under. There are three main business structures in which entrepreneurs must establish their business.

Is the most common business type, where the business is operated and owned by a single individual. In this type of business, the sole proprietor provides capital, does not share profit or loss and runs the business alone. As such, the business and the owner are indistinguishable for tax and legal purposes (Dlabay, 2011). To differentiate this business from other business types, a sole proprietorship is discussed under the following characteristics.

Sometimes it is inevitable that a company with a healthy business can go from stable and successful to insolvent due to a one off event. There is always a possibility for a company to face with insolvency especially when the company does not have the adequate cash flow to meet demands such as payroll and paying invoices. Hence, it is important to take steps to protect the company against it. One way a company can prevent itself from being insolvent is to carry out a ‘Corporate Voluntary Arrangement’ (hereinafter referred to as CVA).