Small Business Management

Business

Quiz 3 :

Forms of Ownership of Small Businesses

Quiz 3 :

Forms of Ownership of Small Businesses

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What kind of business did it become when Becky joined the business
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A partnership is that form of business where two or more enjoy their share in the business. All the partners assume same responsibility to manage the business, and share income and loss as per their capital investment ratio. The partners can claim their income when they file their personal tax returns.
In the business two persons are performing the business operations which is considered as partnership firm. When B Joined D it become a partnership firm because it is owned by the more than two owners. All the partners have to perform equal amount of work, duties and responsibilities.

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What are some advantages and disadvantages of a partnership
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A partnership is a form of business where more than two persons enjoy their share in the company. All the partners have a same responsibility to manage their business, and share income and loss raised from the business. The partners can claim their income when they file their personal tax returns. There are three types of partnership General partnership, and Limited partnership.
The advantages of partnership are given below:
Easy to establish
The person can easily establish the partnership, it doesn't require more legal requirements, and the person can start his or her business without any registration. The person should have Permanent Account Number (PAN) card to start the business. It is not compulsory for the person to get registered under the partnership act.
Large Resources:
The partnership firm have unlimited resources, and funds to invest in their business. The business area is more as compared to sole trader. The partners can get the advantage of large-scale economies.
Large number of ideas
In partnership, the partners have more ideas which can be used in their business in order to expand the business. Every person has good skill, and knowledge which can be used in business to take the important decisions of the business.
The Disadvantages of partnership are given below:
Lack of harmony
The partners may have lack of harmony in their business, they may have different opinions, and views which can leads into disharmony, and lack of management. The partners may blame other partners for loss. It can result into the dissolution of the firm.
Instability:
The partnership firms are not stable in nature, it can come to an end with the death of one partner, and it can be closed if one partner wants to close down the business, or may get dissolve through court.
Termination
The partnership may get terminated with the death of one partner, the person has to close down their partnership firm by distributing the assets, and liabilities by sharing the profit, and loss accumulated from the partnership.

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Distinguish between a C corporation, an S corporation, and a limited-liability company (LLC.)
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A corporation is considered as an separate legal entity. The corporations enjoy their responsibilities, and rights which are possessed by the individuals while they get enter in contracts, or borrow sum amount of money.
The difference between a C corporation, S corporation, and a limited-liability company are as follows:
C Corporations
These corporations are considered as a separate taxable entity. These corporations have to pay the tax at a corporate level at an initial level, and then at the individual level, the tax is paid on the dividends. In C corporations, there is no restriction on the ownership.
S corporations
These corporations get pass-through the taxation entities. These corporations don't have to pay income tax at a cooperate level. The profits, and losses which get raised in the business get passed through the personal tax returns of owners. When the tax is due it will be paid by the owner at the individual level. In S corporations, there is a restriction on number of shareholders, it can't be more than 100.

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Do you think the decision to incorporate as a C corporation rather than an S corporation was correct Explain.
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What form of business was DB Bikes when David owned it alone
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What are some advantages and disadvantages of a proprietorship
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What kind of business did it become when they sold shares and became an S corporation Do you think they made the proper decision Why or why not
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What is the most likely form of business for family farms Why
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What are some advantages and disadvantages of a corporation
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What kind of partnership did David and Becky have Explain the difference between this and other kinds of partnership.
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Define proprietorship, partnership, corporation, limited liability corporation (LLC), cooperative, and joint venture.
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What are some basic questions to ask when deciding on the legal form to choose for a small business
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What-if anything-would you have done differently from the Martins
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Distinguish between a general partnership and a limited partnership.
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Do you think the Martins did the right thing in selling out Why or why not
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