Small Business Case Study
opinionated Essay
1793 words
A small business can be defined as a legal entity consisting of very few employees. Establishing a business such as a proprietorship is the least complicated among business structures. Proprietorships also have a major advantage over other business structures with regards to filing taxes. Profits generated by the business are taxed at individual tax rates thus avoiding the double taxation incurred by corporations. Local economies, government offices, schools and the unemployed benefit greatly from the growth stimulated by these companies. The taxes collected from small businesses and job creation makes small business a vital part of the community.
Small businesses encounter many challenges relating to start-up funding and decisions regarding
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In this essay, the author
- Explains that small businesses are legal entities consisting of few employees. proprietorships have a major advantage over other business structures with regards to filing taxes. local economies, government offices, schools and the unemployed benefit greatly from the growth stimulated by these companies.
- Recommends investing in an accountant to handle tax preparation and filing needs in addition to using accounting software to ensure reporting accuracy and tax compliance.
- Explains that tax errors result in costly penalties that have the potential to create instability that can contribute to the failure of a small business.
- Opines that cloud accounting software is becoming increasingly popular to effectively and efficiently manage the pulse of a company, and that hiring an accountant to assist with tax preparation and planning is invaluable.
- Explains that the most attractive feature offered by modern accounting software packages is web integration, which helps to facilitate the business and accountant relationship.
- Opines that small businesses can benefit from an accountant's extensive tax code knowledge to ensure tax savings are not overlooked.
- Explains that businesses that implement a tax planning strategy minimize taxes owed based on future goals, lower their tax rate, and take advantage of tax credits.
- Explains that self-prepared business returns have high instances of irs audit due to small businesses not keeping accurate records and making errors that involve under-reporting income on their business tax returns.
- Explains that a business may be selected for audit through the discriminant function system, which flags returns based on scoring systems.
- Opines that tax professionals are expert advisors on red flag items and controversial deductions. cpas conduct business with the irs in a manner that is cooperative without providing potentially damaging details.
- Opines that courageous, innovative, hardworking individuals venture on the difficult journey of realizing a dream with hopes of success at the heart of it all.
- Recommends that small business owners delegate complicated accounting processes to seasoned accountants to reduce the rate of tax errors and ensure tax compliance.
Many new business owners struggle with the decision of whether or not to outsource tax compliance services plus “on average 55% of SME’s consider cost of service is an obstacle for them to seek external advice” (Banham, 2014). There are many tax authorities to which a business can owe taxes such as payroll taxes, self-employment taxes, property taxes and sales taxes to name a few. To make matters more confusing, the tax forms, filing and payment deadlines for each type of tax are also individual. Tax errors can occur in a number of ways and are not simply limited to under-reporting income. Other types of errors that can bring about penalties include applying deduction limitations incorrectly and worker misclassification. The IRS grants leniency to first time offenders that fail to file, pay or make timely deposits under the First Time Penalty Abatement policy. The penalties assessed for underpayment of taxes due to negligence are not covered under this policy. The majority of young businesses are not equipped with the financial backing to withstand the blow of such penalties resulting from an error on a tax
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- analytical
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- Small Business Case Studyanalytical essayIn the 21st century, small and large, private and public businesses are all aiming towards economic growth. The small business marketplace is extremely dynamic and the changes are fast. Here are some facts from the US Small Business Administration on small businesses. There are about 30 million small businesses in the United States and employ just over half of the country’s private workforce. They employ a staggering 40% of high tech workers such as computer professionals, scientists and engineers. More than half of the small businesses are home-based businesses and two percent of them are franchises. One of the most important aspects is the fact that a majority of innovations in the United States come from small businesses. In 2008, there were 627,200 new businesses that started, 596,600 businesses that were closed and 43,546 companies that filed for bankruptcy. According to business experts, of all the small business startups, one-third of them are profitable and successful, a third of them just about break-even and the rest of them are down with negative earnings Some buyer’s develops as independent business owners, while others are more likely to prosper as franchise owners. According to a recent report by the Small Business Administration (2007), the United States had approximately 26.8 million small business firms in 2006. In fact, as recently reported by Moutray (2006), most firms in the U.S., are very small and account for about half of the country's non-farm real GDP. Over the past decade small business has generated 60–80% of new jobs annually. In reality, there are easy answers to the independent business versus franchise dilemma. Although, a franchise system offers benefits to owners such as brand recognition, to inc...
In this essay, the author
- Explains that there are 30 million small businesses in the united states and employ just over half of the country's private workforce.
- Explains that franchise owners don't have the freedom to change their products or services based on their personal desires or changing market conditions.
- Explains that small business owners have higher investment costs to buy and operate their business, but they also have more control over the investment decisions and timing.
- Explains that kfc is similar to mcdonald's in that there is a legal franchise agreement lasting 20 years.
- Explains that franchise buyers have an advantage over independent business owners when it comes to brand recognition, but buyers also need to recognize that brand awareness can have a dark side.
- Opines that people should evaluate each potential acquisition on its own merits. franchises fail every day, and people clearly have success with small business models.
- Argues that a small business is the right business model for business owners, since it gives them more opportunities to make changes, regulate operations, and control reputation.
1917 wordsRead More - Small Business Case Studyexplanatory essayAlthough small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
In this essay, the author
- Opines that small businesses should be supported if they want a community to survive and protect their economy.
- Explains that americans have visualized small business as an equalizing force creating social mobility, economic opportunity, and personal freedom.
- Explains that small business dominates anywhere that scale economies or administrative offer few advantages. retail, service, and the professions in particular are smaller business strongholds since personal service and individual reputation of the seller are more important factors to success.
- Explains that small businesses created a tight-knit culture and filled the gaps left in the market that couldn't be filled by large businesses.
- Explains that when spending money at a large corporation in your local economy, the return rate is much less noticeable than if you spent the same amount.
- Explains that small businesses impact the global economy more than large businesses. supporting local businesses can create a roaring economy and allow for economic stability and growth throughout the nation.
- Opines that it is not easy to open a small business of your own. there are more risks involved, such as the government's validity, minimum wage, and banks' rejection of small businesses.
- Explains that small businesses adapt quickly when they find their niche in the community. small businesses have employed more than half of all private-sector employees and generated 60 to 80 percent of new jobs.
- Explains that small businesses are important to local and global economies. they provide most of the job force, create the most revenue, and adapt quickly to help aid the company and area financially as needed.
1783 wordsRead More - Small Business Vs Corporation Case Studyexplanatory essayOwning a Small Business Versus Corporation In this paper, I’m going to be telling you the difference between a Small business and a corporation. These two have a lot in compared and a lot of difference. There are a lot of small business and corporation growing fast throughout the world. Both businesses take a lot to manage and you also must have the skill and the ability to do so.
In this essay, the author
- Explains the difference between a small business and corporation. both businesses take time to manage and skill and ability to do so.
- Explains that small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation.
- Explains that a corporation is constituted by one or more persons and legally endowed with various rights and duties including the capacity of succession. it takes time to develop and requires skills and the ability to overcome stress and anxiety.
- Explains that as a business owner, you are your own boss. you set your work hours and work independently.
- Explains that the biggest disadvantage of starting and growing a business is financial. there's no guaranteed income, and the business owner is responsible for the well-being of employees.
- Explains that the liability of the owners towards the creditors is limited to their investment in the company.
- Explains that establishing a corporation requires registration with the central regulatory authority and listing on the stock exchange. the board hires management to look after the day to day affairs of the corporation.
894 wordsRead More - The Power of Small Businesses in Americaexplanatory essayIt is a little known fact that small businesses make up a major factor of the American workforce. Since the word small is in the title most people think nothing of them, but when one takes the time to think that there are millions of small businesses, most with at least two to ten workers, the amount of people begins to add up. There are many factors that could contribute to a business failing, and it happens all the time in America. Small businesses must have solid business plans, a good use of technology, appealing merchandise, and appropriate financing to survive and prosper in the economy.
In this essay, the author
- Explains that small businesses make up a major factor of the american workforce, but when one takes the time to think that there are millions of small business with at least two to ten workers, the amount of people adds up.
- Explains that in america eight out of ten small businesses fail in just their first year. competition and lack of financing are two huge factors that lead to businesses failing.
- Opines that small businesses are a huge factor in boosting the economy in times of economic downfall, but the thought of them receiving help is often pushed to the side. the success of one’s business depends on the owners marketing abilities.
- Explains that managing a business can be stressful, especially when one is making decisions that could lift or drive their business straight into the ground.
- Explains the importance of a business plan, which is based on the type of business, the person's budget, and other factors.
- Explains that an executive summary is the entire business plan made short and sweet so whoever is reading it would be interested in finishing the plan. all businesses should have a target market and products that would interest that market.
- Explains that marketing is the process of going and maintaining customers. advertisements along with merchandise will be what keep customers coming. a solid marketing plan would include everything from one’s understanding of your target market, their competitive position, and tactics that would be used.
- Explains that technology can help with simple, time-consuming tasks, such as accounting or time tracking. small businesses rely on microsoft excel for budgeting, accounting, preparing financial statements and for day to day operations.
- Explains the importance of a website in today's world, stating that it is important for small businesses to have one.
- Explains that flashy 3-d displays for merchandise attract customers' attention. point of purchase is a wonderful way to advertise because it gets the customer's attention at the most vital time.
- Explains that small businesses don't have the advertising arsenals of larger corporations, so marketing opportunities need to be maximized.
- Explains that ninety percent of small business owners thought that it was extremely difficult the past year to obtain financing.
- Explains that equity financing, which gives investors a portion of the business, is popular with investors. small businesses are suffering from weak sales and decreased customer demand, but larger companies make more than enough money.
- Explains that angel investors invest in small businesses in exchange for partial ownership. they are cautious with their spending to avoid businesses that might not succeed in the long run.
- Explains that small businesses have always been able to create jobs quickly while large corporations tend to lay off their workers. lack of financing is the number one problem.
- Cites rensmeyer, john, bagley, rebecca, and demuth, erin. small businesses draw buyers in with popular merchandise.
1594 wordsRead More - Corporate Law Essayexplanatory essayA recent statistics have shown that every 8 minute a small business go bankrupt. Economists decided that the neutrality in the business decision is really important, and that taxation shouldn’t in...
In this essay, the author
- Explains the legal responsibility of the corporate lawyer, which includes ensuring that the transaction made in the company is legal, advising the directors on their legal rights, and responsible for corporate officers.
- Explains that every 8 minutes a small business goes bankrupt. economists decided that taxation shouldn't interfere with business decision.
- Explains that companies are the dominant structure of any form of business association.
- Explains that partners are responsible for a percentage of the debt, even if the partner isn't responsible.
- Explains that it's the legal term used by people to protect their work, whether it is an artistic or literary work.
- Explains that if a copyright violation occurs, the judge decides the penalty.
- Explains that in 2008, shephard fairey made a portrait of obama, which became popular, and in 2009, photographer who works for the associated press took the same picture.
- Explains that apple sued samsung, claiming that they stole their idea android and made an exact similar phone to iphone and galaxy s ii. apple won the case and samsung paid for apple 119,6 million dollars.
- Explains the history of marks. craftman and painter used to put their signature or mark to make people distinguish their work.
- Explains that gucci won a lawsuit against guess, the judge awarded them with 4.66 million dollars, but the asking price from the beginning was 120 million.
- Explains that an industrial design is the use of shape, colors, combination of pattern to protect a visual design of an object.
- Explains that trade dress refers to its characteristics, the visual, even the packaging or the design of a building, which make the costumer signify the source of the product.
- Explains that the case between samsung and apple was considered both patent and trade dress, because they not only stole the idea of the software, but also the packaging, the design.
- Explains that a formula, design, practice, instrument, information, or pattern makes one stand out from the competition.
- Explains that hilton was accused of pilfering propriety information about its successful rival starwood hotels and resorts. hilton settled by staying out of the boutique hotel market for 2 years.
- Explains that the signs on goods have a geographical origin and pose quality, reputation, and are essentially to the place of origin.
- Explains that in egypt, franchise business is growing fast, and it benefits them, gives them more opportunities and became an important part of their present.
- Explains that corporate law consists of two major parts, corporate finance and corporate governance.
- Explains that in the usa, there are 28 million small businesses, which outnumber the number of corporations to a ratio of 1162:1.
- Explains that partnership is a form of business that is 2 or more partners, in the same company. the partnership act of 1980 subsidizes the definition of partnership.
- Explains that a corporation is another type of companies. it is usually more than 22 owners plus share holders.
- Explains that there is no meaty european corporate law as such, and it is a minimum standard applied in all the members of the union.
- Explains that businesses may incorporate as an se under the european company statue. an se is treated as a native or pubic company of that specific state.
- Explains that in the top 200 corporate departments of the usa, about 27,700 lawyers are working. in citigroup, around 1,500 lawyers work in corporate department. delaware has highly specialized courts and favorable franchise fees structure.
- Explains that many federal laws govern the mechanics of a corporation. under the federal statute, all corporations have to react with the variety of laws concerning, environment protection, governing employment, intellectual property, food and drug regulations, etc.
- Explains that each corporation has its own internal law. bylaws and articles of incorporation are internal rules about the company, internal policies, meeting procedures, and positions.
- Explains that intellectual property refers to the creation of the mind. it is the legal rights recognized exclusive rights of human rights.
- Explains that a patent grants the inventor exclusive rights to exclude others from buying, selling, making, and using his product or process.
- Describes how honda, the japanese company, was suing a local bike manufacturer in malaysia, claiming that some of the models that honda was making were similar models.
- Explains that a japanese company over the registration of darjeeling tea and its logo, which is originally indian, was unable to do anything because the company was not registered in japan.
- Explains that franchises are the practice of selling the rights to use a firm's successful business model, or authorized granted to individuals to carry out special commercial activities, like acting as an agent for that company.
1975 wordsRead More - The New Tax Law: Will It Help More Than Hurt?analytical essaySmall businesses have become one of the biggest parts of American industry. The tax act includes deductions for business expenses and other tax cuts for small business owners. "By cutting individual tax rates and by delivering other incentives for investment in new equipment, 23 million small business owners will receive an average tax cut of $2,209" (Bush). This savings will allow small businesses to grow, which creates more jobs. Bush claims, "This law reflects a common sense economic principle: The best way to have more jobs is to help the people who create new jobs, and those are the small business owners of America." By starting new jobs the American economy is strengthened and encouraged to rebound.
In this essay, the author
- Explains that president bush signed the third-largest tax cut in u.s. history into law. bush hopes the massive $350 billion tax cuts will create jobs and heal the fraught financial system.
- Explains that the tax act includes deductions for business expenses and other tax cuts for small business owners. this savings will allow small businesses to grow and create more jobs.
- Explains that the relief reconciliation act of 2003 will also boost the child tax credit. while cutting the taxes of middle class citizens will help the economy, failing to cut those of lower income families will not bolster their condition.
- Explains that lowering the tax rate on dividend income will help augment the economy and create jobs.
- Opines that all americans are hoping the new tax cuts will help the economy by creating jobs better than it will fail strengthen low-income families.
- Analyzes how bush expects tax cuts to fuel economy, campaign. bush signs jobs and growth plan.
- Cites drinkard, jim, and overberg, paul. "tax-cut provision helps majority of congress." usa today.
- Explains that tax law omits child credit in low-income brackets. the new york times.
662 wordsRead More - Small Business Development in the United Statesexplanatory essaySmall businesses were once the backbone of the United States economy. After a time these business owners expanded, merged, and bought other businesses. This historic business trend has created some the well know corporations we know of today. One example would be the development of Wal-mart. Today, small businesses operate in the shadows of “big box” stores. However, small business owners account for more than 90% of, but only less than 5% or 10% of the GDP, “gross domestic product.” As a manager of a large corporation or a prospective business owner it is wise to be knowladgeble of new competitors, state of the economy, and current management trends. There are trends today that will change everyone’s expecatons of small business development for 2014.
In this essay, the author
- Explains that small businesses were once the backbone of the united states economy. these business owners expanded, merged, and bought other businesses.
- Explains that competition is always present for every business, including new businesses entering the market. they will share with you a few new startups that will gain more ground in 2014.
- Explains that small business development opportunities exist for entrepreneurs in many different fields, such as general business services, testing business, mobile salon, food truck service, and software trainer.
- Explains that a testing business thoroughly tests other businesses’ apps and websites for glitches, flaws and potential growth in niche markets.
- Explains that a mobile salon business is another way to take advantage of the large baby boomer generation that is now senior citizens.
- Explains that food truck restaurants are gaining a lot of attention since 2012. the investment is way lower and the failure rate is only 10 to 20%.
- Explains that being a software trainer is in more demand these days with so many sophisticated programs on the market.
- Explains that the year 2014 holds signs of economic recovery and growth for small businesses. the chief economist, bill dunkelber, states that businesses returned to normal but are not expanding like before the recession.
- Opines that 8 out of 10 small business owners expect 2014 to be a better year, while 40% plan to focus on more marketing and branding. 49.1% of owners say uncertainty of the economy is the biggest obstacle.
- Explains that small business loans rose by 5% to start the year 2014. borrowers are applying for other loans because they require less paperwork and get approved faster than a sba loan.
- Outlines four small business trends that will affect hiring and human resource management for 2014. the first is health care coverage, the second and third is the use of technology and the internet to track employee’s performance, recruit, or build a brand for the business.
- Explains that there are four changes in health insurance that will allow small businesses to offer more affordable and direct healthcare coverage through the state market place instead of group health plans.
- Explains that the use of online performance management tools makes it difficult for employers to accurately track the employee's time and performance.
- States that social media is becoming commonplace for hr management to communicate and recruit employees. it is an inexpensive and powerful tool to market and build a company’s brand.
- Explains the importance of being recognized as an "eoc" employer of choice to attract talented people to fill their positions.
- Describes the 4 small business hr and hiring trends owners need to know for 2014.
1135 wordsRead More - Reasons for Small Business Failureexplanatory essaySmall businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
In this essay, the author
- Explains that business funding is difficult to find in today's uncertain economy and competitive markets. however, there is an opportunity within the realm of government funding that many small business owners are unaware of.
- Explains that small businesses have been considered the mainstay in many countries around the world.
- Explains that sole proprietorship is the easiest and least costly way of starting a business.
- Explains that successful marketing requires timely and relevant market information. market research can uncover dissatisfaction or possible new products or services.
- Explains that a business opportunity is rated high if it meets the customer's needs or wants.
1669 wordsRead More - Small Scale Industry Case Studyexplanatory essay1. Introduction Small scale industry plays a very important role in the Indian economy. The Small-Scale Industries (SSI) in India is broadly classified into two types: Traditional industries and Modern industries. Under traditional industries basically khadi village industries, handlooms, handicrafts, Sericulture etc. are included (Shah. C et al. 2013).
In this essay, the author
- Explains that in small scale handicraft industry, posture is an important consideration in the design of work procedure and equipment.
- Explains that the study was undertaken with the objective to find out the postural risks and musculoskeletal problems experienced by handicraft workers in arunachal pradesh.
- Describes the work patterns of bamboo and wood craftsmen.
- Aims to study the work environment and working conditions of the worker in small scale traditional industries.
- Explains the need for the study to find out the work related posture, musculoskeletal problems and working conditions of the handicraft workers in arunachal pradesh.
- Explains that this study will help us to know about the health status and working condition of the worker working in small scale industry.
- States shah, c., vyas, n.j. (2013), musculo-skeletal disorders (msds) risk assessment in traditional small scale industries by using reba (rapid entire body assessment).
- Describes meena, m.l.et.al's occupational risk factor of workers in the handicraft industry: a short review.
- Explains that small-scale industries play a very important role in the indian economy. traditional handicraft is one of the most important industries employing many people. arunachal pradesh has rich tradition of handloom and carpet weaving.
876 wordsRead More - The Impact Of E-Commerce On Small Businessesexplanatory essayDefinition: A small business may is a business with a small number of employees. The definition of "small business" often different by country and industry, but is generally under one 100 employees in the United States, while under 50 employees in the European Union. These businesses are normally privately owned corporations, partnerships, or sole proprietorships.
In this essay, the author
- Explains that almost all the goods and products manufactured by big companies are sold to customers by small companies.
- Explains that small businesses can grow with customer needs, creating products and services that address highly personalized requests at a moments notice.
- Explains that sole proprietorships are simple to form, have the benefit of freedom, and need low start up costs.
- Explains that tax laws permit them to treat operating expenses and sales revenues as part of their personal finance.
- Explains that small businesses can obtain new data from a market, or even client or two, and dramatically change their business model to align with new opportunities.
- Explains that the proper use of technology allows small businesses to put up big shop follow-up, service and prospecting without the overhead.
- Explains that e-commerce has many benefits and advantages for businesses, consumers and customers, and for the whole community.
- Explains that smaller office buildings, less parking spaces, and fewer it services reduce hr costs for companies.
- Explains that bill payment info is a significant cost for companies and facilitates the delivery of public services.
- Explains that some vendors require certain software to show features on their pages, which is not common in the standard browser used by the majority.
- Explains that ec has a huge impact on businesses at all sizes, and it has changed the way businesses deal with customers and other businesses.
- Explains that it has improved customer service in a great way, as they can get detailed and precise information about products and services.
- Explains that it enables users to order customized products at exactly the way they want, which is not applicable in normal stores, and this leads to a huge attraction to consumers.
- Explains that website design reduces the cost of hiring an offline organization for marketing and promotes your business without custom charges.
- Explains that ec has raised and improved the promotion of products and services, and made it easier and more interactive to contact with customers.
- Explains that because of the ease and direct reach of customers, a new sales channel has been created.
- Explains that it has changed market operations, as some physical markets have started to disappear, and made markets much more efficient and saved costs.
- Opines that online ordering system is better than ordinary ordering as it is more precise and reduces processing time.
- Explains that e-commerce has made it easier for businesses to run their operation without going to their supplier.
- Explains the ability to run multiple manufacturing plants as they are at one location. one firm can have control over the whole manufacturing process.
- Explains that international companies use parts for manufacturing that are made from many countries for communication and cooperation.
- Explains that firms can change production planning and control, supply and payment process, when customized products are provided.
- Explains that ec offer an effective communication between supply and manufacturing, and companies are able to respond efficiently and quickly to demand.
- Explains how e-commerce has grown significantly over the past years, helped small businesses to expand and create new businesses mush easier and faster than before, changed the way they deal with customers and helped the growth of the economy.
- Explains that electronic commerce is a phenomenon that is emerging rapidly between businesses all over the world, and it has affected the businesses at all sizes in many aspects.
- Explains the definition of a small business, which differs by country and industry, but is generally under one hundred employees in the united states, while under 50 in europe. small businesses are usually independent businesses with little influence on the market.
- Explains that small businesses are an important source of new jobs in many countries, and they hire faster than big companies especially in the economic recovery times.
- Explains that electronic commerce consists of buying, selling, marketing, and servicing of products or services over computer networks and the internet. e-business is the cooperation with other businesses and organizations.
- Explains that e-commerce has helped businesses to expand and create new businesses mush easier and faster than before as it has provided new ways of doing business.
- Explains that consumers will have more choice over the web and different range of goods, and cheaper products and services.
- Explains that customers can get full information about the products quickly and easily. products can be customized at competitive prices.
- Explains that the biggest disadvantage of e-commerce is the issue of security. some sites don't have the capabilities to protect consumers.
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