This website uses cookies to ensure you have the best experience. Learn more

Entity Business Plan Essay

1123 words - 5 pages

Entity Business Plan
Tita Kimbeng
University of Phoenix
BUS/415: Business Law
Instructor: Stuart Schwartz
May 12, 2008

Entity Business Plan

Business entities are legally recognized organizational units which provides goods and services against some kind of reward generally money. Two major business entities exist; for-profit business entities and nonprofit business entities. This paper focuses on a for-profit business entity.

The Exportation and E-Commercialization of Tahitian Pearls

The e-commercialization of Tahitian pearls strives to provide affordable high quality pearl jewelry such as necklaces, brooches, earrings and bracelets to all men and women with an elite ...view middle of the document...

An Analysis of the Strengths and Weaknesses of Business Organizations such as Sole Proprietorships, LLCs, Partnerships and Corporations

Sole Proprietorships
Strengths
A business operated as a sole proprietorship has one owner who is only required to pay income taxes on the profits made because the business is indissociable from the owner. Paying only income taxes allows sole proprietorships to avoid double taxation often suffered by corporations. For this reason, the accounting requirement of sole proprietorships is reduced which translates to cheaper accounting costs. In addition, sole proprietorship businesses are generally least regulated by government and requires no legal formalities in starting-up or in dissolution.
Weaknesses
On the other hand sole proprietorship businesses present several drawbacks such as full liability of the owner if sued, extreme difficulty in acquiring outside capital, uncertainty of the duration of the business’s existence given that it depends on the owners will and whim.

Limited Liability Companies (LLCs)
Strengths
In a way, LLCs are sole proprietor businesses whose owners benefit from a limited liability for the actions and debts of the business. Outside this essential difference, LLCs benefit from all the strengths of sole propriety businesses such avoidance of double taxation, cheaper accounting and administrative costs. Furthermore, LLCs allow flexible taxation options such as default tax classification or check-the-box taxation in which LLCs could choose to be taxed as sole proprietor businesses, partnership businesses or corporations. In addition, LLCs could take on a characteristic of partnerships which allows profits or loses to be distributed separately to the economic interests assigned to members without transferring the title of ownership to the members.
Weaknesses
LLCs are a comparatively new form of businesses whose distinct concepts are not fully understood by the public making it difficult to raise capital and are sometimes misclassified as corporations or partnerships in some states or other nations thus stripping the LLCs of their tax and limited liability advantages.

Partnerships
Strengths
Partnerships function like corporations except that the partners of the business benefit from an income tax exemption of the dividend gained.
Weaknesses
On the other hand partners are often exposed to much more liability than shareholders of a corporation.

Corporations
Strengths
By definition, “a corporation is a legal entity or structure created under the authority of the laws of a...

Other Essays Like Entity Business Plan

Acc541 Week 6 Project Essay

1066 words - 5 pages MEMORANDUM TO: Chief Executive Officer FROM: Senior Accounting Team A DATE: October 25, 2010 SUBJECT: New Business Acquisition Pursuant to your request, we have researched some of the issues with our new acquisition including researching the reporting requirements for defined contribution benefit plans, defined contribution plans, in addition to other post retirement plans and what must be done to eliminate the two segments

Accounting Case Essay

656 words - 3 pages 2010, Parent received final confirmation of Poor Son’s plan. Required: 1. Does Parent’s purchase of a legal subsidiary in bankruptcy qualify as a business combination under ASC 805? 2. If Parent’s purchase of a legal subsidiary in bankruptcy qualifies as a business combination under ASC 805, what would be the acquisition date? 3. Should Poor Son apply “fresh-start” reporting under ASC 852? 4. May Parent “push down” its new basis

Marks and Spencer Case Study of Plan a

1180 words - 5 pages entity. It cannot jeopardize its viability by over-extending itself with social or environmental commitments. However, by intelligently identifying the overlapping concerns of employees, suppliers, shareholders, executives, and customers, it can develop some innovative approaches which benefit all stakeholders. In order to be successful, M&S will need to embed corporate responsibility and sustainability into the way they do business. “Plan A will

Applying Coso Enterprise Risk Management Integrated Framework

1044 words - 5 pages risk management. The ERM Framework ERM considers activities at all levels of the organization: Enterprise-level Division or subsidiary Business unit processes Enterprise risk management requires an entity to take a portfolio view of risk. Management considers how individual risks interrelate.Management develops a portfolio view from two perspectives: Business unit level Entity level The ERM Framework The eight

Revenue Recognition

1244 words - 5 pages Case 19-9: Institutional Investor Company Investment existence and valuation Succint: Institutional Investor Company (IIC) is a for-profit conglomerate consisting of multiple business lines operating in a variety of industries throughout the United States. IIC is being audited under audit standards established by the AICPA. IIC is highly profitable and manages an investment portfolio of approximately $500

General Accepted Accounting Standards

811 words - 4 pages Fieldwork, and Standards of Reporting. The first element, General standards require that the auditor be proficient, trained, maintain independence, and exercise due professional care throughout the audit. The second element, Standards of Fieldwork require that the auditor prepare a thorough audit plan with supervision for assistants. The auditor must be educated in the nature of the client’s business and its operations and internal control. The third

Marriot Corporation Case Analysis

1061 words - 5 pages business by purchasing assets of competitors in financial difficulty. However, we don’t think this business plan with expansion would be accepted by the most of creditors without a proper message to the capital market. Because most of original creditors of MC’s bonds were institutional holders who had been suffered from collapse of Junk Bond and Real Estate Market and might also be forced to sell their holdings on MC’s bond at an extreme low price at

Kaiser Permanente

1371 words - 6 pages Corporate includes the Kaiser Permanente national leadership team, as well as staff and program leads who support our regions in a variety of business areas, including quality, finance, brand management, communications, government relations, community benefit, compliance, human resources, health plan operations, hospital operations, legal, and technology Corporate also supports programs such as our Community Benefit efforts and the Care

Management Accounting

657 words - 3 pages Management accounting provides necessary information to assist management in decision-making and management control. The chartered institute of management accountants defines management accounting as “the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of accountability for

Kudler Fine Foods

1459 words - 6 pages organization operations. Many of the tables require normalization, creating new tables, Entity Relational Model (ERM) relationships, and investigating the requirements of associated indexes. New reports are required in support of the relationships between tables, business operations, and the necessities in meeting the need of the customer. The current tables are as follows: Table Description Customer The Customer Table contains demographic data for

Auditing Memo

1056 words - 5 pages that if a company has a controlling financial interest in SPE then the assets, liabilities, and results of business activities of the SPE should be included in the consolidated financial statements of the company, (FASB, 810-10-15). Assets and liabilities of newly consolidated entity are initially measured at their fair values. However, assets and liabilities transferred to a SPE by its primary beneficiary are measured at current book value

Related Papers

Cip 009 3 Essay

1691 words - 7 pages business judgment. Replaced the RRO with the RE as a responsible entity. Rewording of Effective Date. Communication of revisions to the recovery plan changed from 90 days to 30 days. Changed compliance monitor to Compliance Enforcement Authority. Updated version numbers from -2 to -3 12/16/09 Board approved 01/24/2011 4/19/12 Approved by the NERC Board of Trustees Update version number from “3” to “4” Update Update to conform to changes to CIP-002-4 (Project 2008-06) Change Tracking 3 3 4 4 FERC Order issued approving CIP-009-4 (approval becomes effective June 25, 2012) Added approved VRF/VSL table to section D.2. 5

Week 3 Homework Essay

1169 words - 5 pages , alternatives, and feasibility; dividing the project into manageable tasks; estimating resources and creating a resource plan; developing a preliminary schedule; developing a communication plan; determining project standards and procedures; identifying and assessing risk; creating a preliminary budget; developing a Statement of Work; and setting a Baseline Project Plan. 4) Using any business as an example, provide one example each for its

Human Resourse Essay

804 words - 4 pages Student name Course name Course code Instructor Date of submission Defines business entity refer to enterprises that are formed by an individual or group of individuals, who engage in business activities with an aim of making profits (Emerson, 2013). There different types of business entities which includes but not limited to the following; sole proprietorship, partnership, and corporations. When starting an enterprise, it’s always

Legal Forms Of Business Essay

1003 words - 5 pages explanation on why this corresponding business form is preferred. Sole Proprietorship According to Cheeseman (2010), a sole proprieship is the simplest form of business organization and there is no separate legal entity. (p. 530). Under sole proprietorship the business is owned and executed by a single person. The proprietor makes all the management decisions and has authority to receive profits. Sole proprietorship business could easily be