Comparing Types Of Business Ownership - 1331 Words

Comparing Types of Businesses Name: Sabrina Bhinder Date: September 10th, 2014 In the space below, explain each of the following terms and provide an example. Forms of business ownership (5K marks) 1. Sole proprietorship †¢ A business that is just owned by only one person, who receives all the profit for everything. Example of a sole proprietorship can be a hairdresser that buys a chair for their business and can get customers directly for them. 2. Partnership †¢ When a business contains more than one owner it is a partnership as they share all responsibilities, profits and losses. Example of a partnership could be Pink and Victoria’s secret, since they are like the same company but different brands, and they share all profits and losses. 3. Corporation †¢ Corporation is a type of business, which is already REGISTERED as a public owned company but it is also recognized as a separate entity from its owners. Example of corporation is Best Buy. 4. Cooperative †¢ People who use the goods and service offered by their own business. Example of cooperative is dairy farms. Different types of businesses (10K marks) 1. Service Assistance offered from different businesses, usually in return of money, but service is a thing that is not tangible. That means that services can’t be goods or anything that is tangible. Example of a service is hair salon service. 2. Retail †¢ Any business that buys and resells goods to anyone. Example: Garage, Forever 21, etc.Show MoreRelatedTypes Of Collateral Used For Business Lending1474 Words   |  6 Pages When it comes to the type of collateral used for business lending, real estate is the most common one irrespective of the firm size. About 40% of all banks rank real estate as the most preferred type of collateral used for business lending in small, medium and large firms. The next most important forms of collateral used across all firm sizes are cash and other liquid assets (approx. 22%) followed by (10-15 percent of banks) personal and bank guarantees. When banks across developed and developingRead MoreOwnership of Topshop and Police876 Words   |  4 PagesP1 There are two types of businesses, private and public. The difference between public companies and private companies is their ownership. Private held companies are under control of a single or group of shareholders when public companies are owned by the government. [pic] Ownership of the business Top shop is operating in private sector. It is a Public Limited Company this means they sell their shares on the stock exchange and that it’s available to the public to purchaseRead MoreThe Limited Liability Partnership ( Llp )1295 Words   |  6 PagesThe limited liability partnership (LLP) is another type of partnership. LLP is â€Å"a partnership consisting of one or more general partners and one or more limited partners† (p. 554). â€Å"It was created to limit the personal liability of the partners of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision† (Nickels, McHugh, McHugh, 2013, p. 119). This business form also â€Å"allows a partnership to continue as a pass-through entityRead MoreThe Limited Liability Partnership ( Llp )1299 Words   |  6 PagesThe limited liability partnership (LLP) is another type of partnership. LLP is â€Å"a partnership consisting of one or more general partners and one or more limited partners† (p. 554). â€Å"It was created to limit the personal liability of the partners of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision† (Nickels, McHugh, McHugh, 2013, p. 119). This business form also â€Å"allows a partnership to continue as a pass-through entityRead MoreSole Proprietorship, Partnership and Corporation Business Types1244 Words   |  5 PagesAbstract Starting a business with no funds or management experience can prove to be difficult. Comparing and contrasting, for the sole purpose of deciding which business type would be beneficial to the scenario given three business types were discussed. Sole proprietorship, partnership and corporation were reviewed. The outcome chosen was partnership being as it relates best to the scenario discussed. The idea of opening a business is not one to take lightly. Being an inventorRead MoreThe analysis and application of the balance sheet1732 Words   |  7 Pagessheet or called statement of financial position is the only one which describe a single point in time of a business’ calendar year. â€Å"In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership, a corporation or other business organization, such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is oftenRead MoreChoosing A Smart Property Purchase1624 Words   |  7 Pagesinformation from the local council or state government, as well as the private sector, in terms of planning for population growth and infrastructure spending in that specific area. †¢ Pound the Pavement Talking to residents, local community members, business owners and school principals is another helpful way to understand the issues and prices in that specific location. Understanding how quickly properties can be developed in the neighbourhood is important, because the quality of supply and demand canRead MoreTypes of Business Organisation and Ownership1626 Words   |  7 PagesType of business, purpose and ownership (P1) To run a business smoothly or effectively all business have aims or purpose, this could be survivor, to grow, to become a market leader. A business also aims to provide exception service or to create a reputation as the best on market. Types of business To understand how business works and what they set out to achieve, it’s necessary to have an understanding of the main types of business sectors which exists within a business organisation. There areRead MoreBenefits Of A Partnership Is The Trust Factor1604 Words   |  7 Pagesrequires. Also, a partnership is taxed as personal income for each partner, not as a separate entity. That being said, each partner can deduct the losses of the business from their own personal taxes if it is a general partnership. This could be an option for the four brothers and their cousin, Xavier. This would make sure that the business is only run by the family and it gives everyone an equal say in the decision making of the farm. It also would help that the farm would be taxed only as personalRead MoreRole of Financial Markets in a Modern Economy1179 Words   |  5 Pagesintermediaries allow for the mobilization of money between savers and borrowers. The share market is the financial market in which investors buy and sells shares. The share market’s main function in the economy is to allow consumers to attain part-ownership of a company and further their wealth and in effect provi de funds for businesses for expansion. The main effects the share market has on the economy is its ability to reallocate resources and mirror overall economic growth. The financial services