Partnerships
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Partnerships are business structures consisting of two or more owners who share responsibilities and profits. There are three categories of partnerships - general partnerships where all members share equal risk and reward, limited partnerships where one partner has control and others provide financial support, and limited liability partnerships where partners have limits on risks and rewards. Partnerships offer advantages like easy creation and access to more resources, but also carry disadvantages like unlimited liability for general partners and potential for conflicts between partners.
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This document provides an overview of different forms of business ownership, including sole proprietorships, partnerships, and corporations. It describes the key characteristics of each form: sole proprietorships are owned by one individual and have unlimited liability but are easy to form; partnerships are owned by two or more individuals who share profits and liability; corporations are legally separate entities that can sell stock to raise capital but are more heavily regulated. The document also lists some advantages and disadvantages of each ownership structure and examines special types of business entities like S-corporations and LLCs.
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This document discusses different forms of business ownership, including sole proprietorships, partnerships, and corporations. It describes sole proprietorships as businesses owned and run by one person, who takes all profits but also bears all losses and responsibilities alone. Partnerships are owned by two or more individuals who share profits, losses, and management responsibilities according to a partnership agreement. There are general partnerships, limited partnerships, and limited liability partnerships. Corporations are independent legal entities owned by shareholders, who elect directors to manage the company and share profits through dividends but have limited liability for debts.
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The document provides information about different types of businesses and how they are organized to achieve their targets. It describes:
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2) How private limited companies and sole proprietorships are typically organized, including common roles and reporting structures within private limited companies.
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Sole traders are owned and run by one person, finance comes from personal savings, and the owner takes on unlimited liability but has full control. Partnerships have 2-20 owners who share capital, profits, and losses through a deed of partnership. Limited companies have a separate legal identity from owners, with shareholders electing directors to run the business and providing limited liability.
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This document discusses different types of business organizations:
1. Sole proprietorship - Owned and run by one individual who has unlimited liability but full control. Low start-up costs but income is taxed personally.
2. Partnership - Owned and run by two or more individuals who share profits/losses. Types include general, limited, and joint venture partnerships. Partners have unlimited liability but easy to form.
3. Corporation - A separate legal entity from its owners with transferable ownership. Limited liability but more regulation and expensive to organize than other structures.
4. Cooperative - Owned and controlled by members who voluntarily join to achieve a common social or economic goal. Democratic control
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The document discusses the major forms of business ownership including sole proprietorships, partnerships, corporations, S-corporations, and limited liability companies. For each form of ownership, it covers characteristics like liability, tax implications, control structure, and costs. Choosing the best structure depends on an entrepreneur's goals, capital needs, and tolerance for risk. The key is understanding how each form matches their specific business and personal circumstances.
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Unit bm301 an introduction to the business environment-4
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Issue or Consideration
Sole Prop.
General Partnership
Limited Partnership
Limited Liability Co
Subchapter “C”
Corporation
Subchapter “S”
Corporation
Liability
Unlimited personal liability
Unlimited personal “Joint and Several” liability for Partnership
Gen Partners (at least 1):unlimited liability
Limited Partners: Limited to investment
Shareholders- no personal liability beyond investment
Shareholders- no personal liability beyond investment
Ease of Formation
No formal requirements
No formal requirements
Requires formal filing
Requires formal filing
Requires formal filing and qualification and “election” with IRS
Ease of Operation
No issue
Limited concern- as agreed
ONLY General Partners operate
No participation of Limited Partners
Shared operation between Directors (major decisions) and Officers (day- to- day) and Shareholders (fundamental changes)
Shared operation between Directors (major decisions) and Officers (day- to- day) and Shareholders (fundamental changes
Taxation
No additional tax issue or burden
Partnership return with Pass through to individual partners
Partnership return with Pass through to individual partners
Possibility of double taxation
Avoids possibility of double taxation
Capitalization
Limited to loans (usually banks)
Limited to loans (usually banks)
Also have limited partner investment
Issue stock or Bonds
Issue stock or Bonds
Duration
Limited duration
Limited duration
Limited duration (gen. Partners) flexibility with limited partners
Perpetual
Perpetual
Alienation
No
No
No-General
Possible with Limited partners
Simple stock transfer
Simple stock transfer
Partnership Form of Business
The partnership is defined as the type of business operation formed between two or more persons interested in a common course: Making profits. The government recognizes a few kinds of partnerships (Lorette, n.d., para. 1). At the point when setting up an association, the first thing you will need to do is pick a name for the organization. While this may sound basic, it is imperative to make certain the name does not abuse the trademark privileges of another business. There are a few approaches to figure out whether another business as of now, has such a name. Firstly, one can do a name search online on the U.S. Patent and Trademark Office website. Also, one can conduct an inquiry of enrolled entrepreneurs. However, this procedure is followed via the legal office (secretary of state.)
Likewise, partners should decide the specifics of how the organization will be overseen, how much every accomplice will contribute, and how the benefits will be shared. While the more prominent the extent of the venture implies the bigger the rate of proprietorship, the greatest investor may not even need to maintain the business. Additionally, while you may confirm that all accomplices have equal force in choice making, certain accomplices ought to be recognized as having the power to settle on choices on everyday operations and the general ad ...
Presentation of Joint venture Technology
A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, profitability and shared risks and shared governance.
Types of business ownerships
There are several types of business structures that provide different levels of liability protection for owners. A sole proprietorship is owned by one individual who has unlimited liability for business debts. A general partnership has two or more owners who each have unlimited liability. A corporation provides shareholders with limited liability, protecting their personal assets but requiring more complex legal structures. Cooperatives are businesses owned by their members to provide mutual benefits rather than profit.
Know About the Four Types of Partnership Firm And Its Partner in India
A partnership is an agreement between two or more individuals to share profits from a business they co-own. Key characteristics of a partnership include a written or oral agreement between partners, at least two co-owners who share profits and losses, unlimited liability for each partner, and a business purpose or profit motive. There are generally partnerships types including general partnerships where all partners share equally in management and liability, limited partnerships where some partners have limited liability and control, and limited liability partnerships where all partners have limited liability. A partnership at will has no fixed expiration date specified in the agreement.
12 8 08
The document discusses different types of partnerships, including general partnerships, limited partnerships, and how to make a partnership work successfully. A general partnership has at least one general partner who has unlimited personal liability for managing the business. A limited partnership has both general and limited partners, where limited partners have limited liability. Key advantages of partnerships include easy establishment and pooling of capital and skills, while disadvantages include unlimited liability and potential conflicts. Communication, shared responsibilities, and honesty are important for partnerships to be successful.
Business Organizations
The document discusses different types of business organizations including sole proprietorships, partnerships, corporations, franchises, cooperatives, and non-profits. Sole proprietorships are owned and managed by one individual and make up about 6% of businesses in the US. Partnerships are owned by two or more individuals who share responsibility and liability. Corporations are legally separate entities from their owners and can sell ownership shares to raise capital.
Ent9 the organizational plan
The document discusses different forms of business organization including proprietorships, partnerships, and corporations. It describes the key characteristics of each structure such as ownership, liability, management control, taxes, and other attributes. The optimal structure depends on factors like the capital needs, goals for control and decision making, tax implications, and ability to raise funds for the business. Later sections cover establishing an effective management team, board of directors, and organizational design.
Week 5 Forms of Business and Writing a Business Plan.pdf
This document discusses different types of business ownership including sole proprietorships, partnerships, and corporations. It provides details on the key advantages and disadvantages of each structure. It also discusses what entrepreneurs are, characteristics of entrepreneurs, common industries for small businesses, and key steps for starting a new business such as developing a business plan. The document provides guidance on important questions to consider when deciding on a business idea and type of ownership.
Summer 15 introduction to business lecture 2_part 2
A partnership is a business owned by two or more people. There are generally two types of partnerships - general partnerships, where partners have unlimited liability, and limited partnerships, where limited partners are only liable up to their investment amount. A partnership agreement does not need to be in writing but it is good practice to have a written contract outlining terms like responsibilities, profit sharing, and dissolution. Partnerships allow for more capital and combined skills but also carry risks of conflict and unlimited liability for general partners.
Pillay Ronal Anthony Roll no;79 assignment 1.pdf
The document discusses different types of business organizations including sole proprietorships, partnerships, corporations, and cooperatives. It covers the key characteristics of each type of business organization such as sole proprietorships being owned by one individual, partnerships having two or more owners who share profits and liability, corporations being legally separate entities from their owners with transferable shares, and cooperatives being jointly-owned organizations that provide services to their members. The document also compares the advantages and disadvantages of each type of business organization and factors to consider when choosing between them such as capital requirements, liability, and tax implications.
Sole Proprietorships and Partnerships What are the four primary disadv.docx
Sole Proprietorships and Partnerships What are the four primary disadvantages of the sole proprietorship and general partnership forms of business organization? What benefits are there to these types of business organization as opposed to the corporate form?
Solution
A Sole Proprietorship is a business with one owner who operates the business on his or her own or employ employees. It is the simplest and the most numerous form of business organization generally, however it is dangerous as the sole proprietor has total and unlimited liability. Self contractor is one example of a sole proprietorship.
Disadvantages of a sole proprietorship
A Partnership is a business with two or more individuals owns and manages the business. Partners share the unlimited liabilities of the business and operate the business together. There are three classification of partnerships: general partnership (partner divide responsibility, liability and profit or loss according to their agreement), limited partnership (in additional at least one general partner, there are one or more limited partner who have limited liability to the extent of their investment), and limited liability partnership (all of the partners have limited liability of the business debts; it has no general partners).
Disadvantages of a partnership
A corporation is a limited liability entity doing business owned by multiple shareholders and is overseen by a board of directors elected by the shareholders. It is distinct from its owners and can borrow money, enter into contracts, pay taxes and be sued. The shareholders gain from the profit through dividend or appreciation of the stocks but are not responsible for the company’s debts.
Disadvantages of a corporation are the benefits from other type of bsuiness organisation as opposed to corporate form:-
.
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American revolution
The American Revolution began with protests against British taxes and control over the colonies. The First Continental Congress organized resistance efforts through economic boycotts. Armed conflict broke out at Lexington and Concord in 1775, starting the war. Key battles like Bunker Hill showed the colonists could stand up to the British. The Declaration of Independence was adopted in 1776. Though the British had more resources, the colonists prevailed through resilience and the entry of France as an ally in 1778. The war ended with the British surrender at Yorktown in 1781 and recognition of American independence in the 1783 Treaty of Paris.
What do stock indexes show?
Stock market performance can indicate the overall health of an economy. When stock values are rising collectively, it is considered a bull market, while falling stock values represent a bear market. Common stock indexes like the Dow Jones Industrial Average and S&P 500 track the performance of large groups of companies to gauge national economic trends.
Other Financial Assets
Other financial assets include stocks, money market mutual funds, and certificates of deposit. Stocks represent ownership in a company, money market mutual funds invest in short-term assets but are not FDIC insured, and certificates of deposit are bank deposits for a fixed time period at a higher interest rate. Financial assets are traded on capital markets, which involve assets that mature in over a year, or money markets, which involve assets that mature in under a year. They can also be traded on primary markets, where only the original holder can redeem the asset, or secondary markets, where the asset can be resold.
Bonds Defined and Catagorized
Bonds are loans given to governments or corporations. They have a par value (principal/face value), a maturity date when the principal will be repaid, and a coupon rate that is the interest paid annually. Bonds are rated based on risk from AAA (safest) to D (riskiest), with higher ratings receiving lower interest rates due to lower risk. Bonds can be resold before maturity, sometimes at a discount if interest rates have changed. Bonds benefit issuers by providing guaranteed interest payments and not imparting ownership, but also legally obligate coupon and principal payments regardless of economic conditions. Main types of bonds include savings bonds, corporate bonds, municipal bonds, treasury bonds, and high yield "
Investing and the Financial System
The financial system allows savers to provide money to borrowers through financial institutions like banks. Savers deposit money in savings accounts or invest in assets, and banks use this money to issue loans to businesses and individuals. Borrowers use the loans to make purchases or investments and pay interest to the bank. The bank then shares some of its profits with savers in the form of interest to incentivize saving. When making financial decisions, savers must consider the tradeoff between return, liquidity, and risk - higher potential returns generally come with higher risks.
Forms and Functions of Modern Banking
The document discusses modern banking, including measuring the money supply, functions of financial institutions, and e-banking. It defines the M1 and M2 money supplies and explains the functions of storing money, saving money, loans, mortgages, and credit cards. It also discusses interest, the role of banks in earning profits, and modern electronic banking methods like ATMs, debit cards, online banking, automatic bill pay, and stored value cards.
Uses and Characteristics of Money
Money serves three main purposes: as a medium of exchange to facilitate trade beyond bartering, as a unit of account to compare the values of different goods and services, and as a store of value to maintain purchasing power over time. To be considered money, an item must have six key characteristics - it must be durable, portable, divisible, uniform, have a limited supply, and be widely acceptable for transactions.
Wages and Skill Level
Wages are determined by the laws of supply and demand in the labor market. The demand for workers and their wages is set by the competition between companies needing employees, while the supply of workers depends on the number willing to work a given job for the offered compensation. A key factor in wages is the skill level required - jobs are categorized as unskilled, semi-skilled, skilled, or professional labor depending on the specialized skills and training needed, and typically require higher compensation as skill levels increase.
Multinationals and Conglomerates
There are three main types of corporate expansions discussed in the document: mergers, multinationals, and conglomerates. Mergers can be horizontal between competitors, vertical between different production stages, or form conglomerates between unrelated businesses. Conglomerates allow businesses to diversify across industries to increase profits and reduce risks. Multinationals are the world's largest corporations that operate across multiple countries, facilitating technology spread but also wielding large influence that can enable corruption.
Sole Proprietorships
A sole proprietorship is a business owned and operated by one individual who receives all profits and is responsible for all debts. It is the most common business structure in the US. Sole proprietorships are easy to create and dissolve but the owner faces unlimited liability and responsibility. While the owner has full control, sole proprietorships have limited resources and lack long-term security compared to other business structures.
Government Intervention in Markets
The document discusses three key roles of government in markets: anti-trust regulation, merger regulation, and deregulation. Anti-trust regulation aims to break up monopolies into smaller competitors to decrease prices. Merger regulation evaluates proposed mergers to prevent monopolies and protect consumer prices through competition. Deregulation removes obsolete or inhibitive regulations as industries evolve over time to promote economic growth and competition.
Monopolistic Competition Defined
Monopolistic competition is a market structure with multiple producers making similar but not identical products. While the goods are substitutes for each other, producers have limited control over price and must engage in non-price competition around factors like location, quality, and branding in order to differentiate their goods and attract consumers. Under monopolistic competition, multiple monopolies coexist producing differentiated goods, where consumers can choose between close substitutes.
Monopolies Defined
A monopoly is a market structure where only one producer exists for a specific good or service due to barriers to entry that prevent new producers from competing. There are two main types of monopolies: natural monopolies, which occur when a single large producer is more efficient, and governmental monopolies, which are created through regulations that intentionally or unintentionally limit competition, such as licenses, patents, and franchises.
Perfect Competition Defined
Perfect competition requires multiple participants, identical products, free information sharing, and easy market entry and exit. It is rare in practice as most markets have some level of government intervention or specialization, violating one of the key characteristics. The characteristics include many producers and consumers, commoditized goods where quality and features are identical, all participants having access to the same information on prices and availability, and easy ability for producers to start or leave production.
Price and Equilibrium
Price and equilibrium are determined by the interaction of supply and demand. At equilibrium, the quantity suppliers are willing to provide equals the quantity demanded by consumers at a price they are both willing to accept. Disequilibrium can occur if there is excess supply, when the price is too high for consumers, or excess demand, when the price is too low for suppliers. Prices then adjust until a new equilibrium is reached that balances supply and demand.
Elasticity of Demand
Elasticity measures the responsiveness of quantity demanded to a change in price. It is calculated by finding the percentage changes in quantity and price and taking the ratio. An elasticity over 1 means demand is elastic and sensitive to price, under 1 means inelastic demand not sensitive to price, and exactly 1 means unitary elastic demand where quantity and price move proportionately. Demand for necessities tends to be inelastic while luxuries have elastic demand more impacted by price changes.
Factors Affecting Demand
The document discusses factors that can affect demand beyond just price. These factors include consumer income, expectations, population change, and tastes/trends. Changes in these non-price factors do not cause movement along the demand curve, but instead shift the entire demand curve, either to the right if demand increases or to the left if demand decreases. Examples are given for how each factor can impact demand for certain goods.
Demand Defined
Demand is defined as the willingness and ability of consumers to purchase varying quantities of a good at different price points within a given time period. The law of demand states that as the price of a good increases, the quantity demanded decreases, and vice versa. The law of demand is driven by two factors: the income effect, where consumers purchase less of a good when its price rises due to limited resources, and the substitution effect, where consumers substitute a good for similar alternatives when the initial good's price increases.
Production Costs
Production costs are made up of fixed costs, which do not change such as facility and equipment maintenance costs, and variable costs, which do change depending on production levels such as raw material and labor costs. Together, fixed and variable costs make up a producer's total costs, with fixed costs still being incurred even if production is shutdown temporarily but variable costs adjusting based on production quantity.
Marginal Product of Labor
The document defines marginal product of labor and explains its importance for producers. The marginal product of labor is the change in output from adding one more worker. There are three forms: 1) Increasing marginal returns when adding workers increases per-worker output due to specialization. 2) Diminishing marginal returns when adding more workers decreases per-worker output as they compete for limited resources. 3) Negative marginal returns when adding more workers actually decreases total output by disrupting production. Analyzing the marginal product of labor helps producers determine the optimal workforce size.
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