Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Outline 4 types of business ownership
Outline 4 types of business ownership
Outline 4 types of business ownership
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Outline 4 types of business ownership
There are many different types of ownerships which a business can adopt. Amongst others, four forms are a sole trader, partnership, company and close corporation. This report will cover and compare these four forms of ownership. Sole trader A sole trader is a business owned by one person. With a sole trader, the business is not a separate legal entity. This means that the owner has full liability in his personal capacity for debt of the business in their personal capacity. The owner contributes capital to the business at his own digression and this is means that the capital contribution to the business is limited to the capacity that the owner can contribute capital. The capital is debited to an account call Capital Contribution. The net profit at the end of the year is transferred to the Capital Contribution. The owner is taxed in his personal capacity for the …show more content…
A partnership is funded by the capital contributed by each of the members. A partnership is not regarded as a separate legal entity and therefore the partners are jointly and separately responsible in their personal capacity for the debts of the business. In addition to the ledger accounts of a sole trader, partnerships have a few additional accounts. Each partner has their own capital, drawings and salary account. Current accounts for each partner, interest on capital, the appropriation account are accounts that are used to distribute the net profit of the business. The net profit for the year is transferred to the appropriation from where it is distributed as per the partnership agreement. Partners are taxed in their personal capacity for their share of the net profit of the company – the partnership is not taxed. Partnerships do not need to prepare financial statements for independent, external
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
There are many types businesses in this world; these include Sole trader, Plc, Ltd, Partnership, Co-op and franchise. These types of businesses are all different from each other. Some of them need just one owner, some have hundreds.
It is one sad existence, to live and die, without discovering, what could have been. The question is often asked, what is the meaning of life? Or even, what is the purpose? There is no clear answer, and yet there is a search in every moment, every breath, and every corner, for a minute hint. In a societal setting, identity is merely determined by the amount of tangible things owned. Society places the ideology on individuals that those who own the most tangible things are above others. An individual can trump all those societal values by owning the self. This brings equality to all, and levels the playing field. This has been true throughout history, however behind all of this, there are individuals learning to conquer themselves. It begs the question, what defines a person, the physical or the metaphysical? There is obviously a compelling relationship between ownership and the sense of self or identity. But, is it ownership that determines the sense of self or is it perhaps, that the sense of self determines ownership. The
Imagine this, you are looking to buy a used car. You go to a car dealership that is very popular. They show you a car that you really like and you tell them that you are very interested, you just want to evaluate the alternatives first. You decide to go to an another car dealership, but this time it is a dealership that just started business. This dealership shows you a car very similar to the car you liked at the other dealership, and on top of that, it is almost $10,000 cheaper. Immediately, you know that the dealership is giving you a good deal and without hesitation you buy the car. A few months later you begin to notice that the transmission is going out in your recently purchased car. You go to the dealership and complain, but they say that’s too bad, you bought the car as is. You are beyond frustrated. You tell your friends to never buy a car from that dealership. If the company continually screws over their customers, the business will be unethical and once others find out about the poor business, it will spread like a wild fire.
Control: They are solely owned by one individual who has complete autonomy of every aspect of the business, including direction, use of profits, amount of debt, time spen...
What does it mean to own something? The book definition of "own" is, "something belonging to oneself or itself." (Dictionary) Ownership is a common part of life today in many forms. We own all kinds of stuff and continue to get more. But what does it really mean to own something? Does it mean you payed for it so therefore it's yours? Does it mean you have some kind of connection to that certain thing so you believe to have ownership over it? Or does it even mean that by using the tern "ownership", you own something? People believe ownership to mean many different things. Personally, I believe that it means it is something close to you that belongs to you. I also think that ownership has a lot to do with how you feel about that certain thing. People have many different views and ideas of ownership today.
Ownership and self (identity) are commonly joined together under one thought: ownership can very well define a person’s identity. I believe that is to be true. It is possible to own something physically whether that is a phone, a computer, a car etc., or something that simply exists within our minds such as a thought (idea), a concept or whatever it may be. However, “To own” – a verb – doesn’t necessarily mean to own or have something, it also means to know something or that it is a part of you or “admit or acknowledge that something is the case or that one feels a certain way”- Google. Affluential philosophers have argued the various ways of how to express ownership and possession that shows its universality on this well rounded topic. It’s claimed that it builds up moral character and denounced by its undesirable and detrimental effects – good or evil. It is, in fact, that ownership and its intricacy builds both and individual self-comprehension and group- identity.
Forms of Private Sector ownership are: Sole Trader, Partnership, Private Limited Company, Public Limited Company, Franchisee, and Co-operatives. Sole Trader These are... ... middle of paper ... ...ility. This is why many small businesses that have only a small number of partners will change their business ownership and become a private limited company. Background Information When Mac and Dick McDonald first ran their restaurant in San Bernardinosuccessfully for 21 Years it was a form of partnership, in which they made high profits which they were happy with.
Some of the most impoverished communities often have the greatest sense of gratitude and thankfulness for what they have, extending beyond material items. They are thankful for the friends, families, religions, as well as skills they obtain, and tend not to focus on the material items they are lacking. Ownership can be seen as the act, state, or right, of possessing something and is well defined by both Plato, who claims owning objects is detrimental to a person’s character, and Jean-Paul Sartre who proposes that ownership extends beyond objects. Skills and qualities that you posses are more valuable than tangible goods and allow you to fully develop a good, moral, character and sense of self. An example of someone who is lacking many tangible
There are many different types of business structures, but if you own and operate a business that it is a sole
Ownership has long affected our sense of self and worth. It has changed with the times but still affects us the same way as before. The famous philosopher, Plato, thought that “owning objects is detrimental to a person's character”. By examining the different types of ownership and evidence from historical to contemporary society, ownership correlates with one’s sense of self by either improving or diminishing it.
A Sole Trader is a business that is owned by only 1 person. They are
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
According to Corporation Act 2001 s124(1), it illustrates that ‘’A company has the legal capacity and powers of an individual both in and outside the jurisdiction” . As it were, company as a legal individual must be freely with all its capital contribution shall embrace liability for its legal actions and obligations of the company’s shareholders is limited to its investment to the company. This ‘separate legal entity’ principle was established in the case of Salomon v Salomon & Co Ltd [1987] as company was held to have conducted the business as a legal person and separate from its members. It demonstrated that the debt of company is belonged to the company but not to the shareholders. Shareholders have only right to participate in managing but not in sharing the company property. Besides ,the Macaura v Northern Assurance Co Ltd [1925] demonstrates that the distinction between the shareholders and company assets. It means that even Mr Macaura owned almost all the shares in the company, he had no insurable interest in the company’s asset. The other recent case is the Lee v Lee’s Air Farming Ltd [1961] which illustrates that the distinct legal entities between employee ad director allows Mr.Lee function in dual capacities. It resulted that the corporation can contract with the controlling member of the corporation.
There are many advantages and disadvantages when owning your own business. When you own you own business, it’s known as a sole proprietorship. But with any type of business, there will always be advantages and disadvantages.