Question One
Advantages of a sole proprietorship include complete control over decision-making, simplicity in its structure, and its profits are only taxed once as personal income since it goes directly to the owner. Disadvantages include being personally liable for the debts of the business, having limited funds since it comes from the owner’s own money, and not being investor friendly because of investors are hesitant to give money to a business with only one decision-making head. Similar to a sole proprietorship, a general partnership also only pays taxes once on its profits, filed under personal income for each partner. Partnership are easy to establish, and with the additional associates, decisions can be made more economically. …show more content…
N.p., n.d. Web. 01 Sept. 2016. Provided information about nonprofits.
"Center for Cooperatives." Business Structure Comparisons. N.p., n.d. Web. 01 Sept. 2016. Provided comparisons between co-ops and nonprofits.
Question Four
The Sarbanes-Oxley Act of 2002, referred to as the SOX Act, was passed with the intention of curbing fraudulent accounting practices. In response to the many scandals proceeding 2002, such as those surrounding the Enron Corporation and WorldCom, this act of legislation demands full disclosure of the financial practices of a corporation in order to build investor confidence in financial statements and the market as a whole. The three main sections of the SOX Act are sections 302, 404, and 802. Section 302 demands that top management vouch for the accuracy of their financial statements. Section 404 establishes internal controls. This is extremely costly because setting up and maintaining these internal controls is not cheap. Section 802 deal with the actual reporting of accounting information. It describes three major practices involved with record keeping: destruction and falsification of records, holding period for records, and type of records to be stored. …show more content…
N.p., 2003. Web. 01 Sept. 2016.
Question Five
Insider trading is when someone sell or buys a security using knowledge that is not publically acknowledged. If the insider does the trading before the information is released, it is illegal; if they trade after the information is released, then it is legal. So, should insider trader be legal? The answer is a simple no. By using insider information, the trader gains an unfair advantage. And we live in a society that tries to be fair. If insider trading were to become legal, a lot of people would lose confidence in the market and may stop trading altogether since it would be rigged.
Question Six
Money Market: a place for the buying and selling of short-term securities
Capital Market: a place for the buying and selling of long-term securities
Primary Market: the place for incorporating new funds into the market
Secondary Market: the place for the resale of securities that has already been introduced into the market.
Question
Advantages of a sole proprietorship include complete control over decision-making, simplicity in its structure, and its profits are only taxed once as personal income since it goes directly to the owner. Disadvantages include being personally liable for the debts of the business, having limited funds since it comes from the owner’s own money, and not being investor friendly because of investors are hesitant to give money to a business with only one decision-making head. Similar to a sole proprietorship, a general partnership also only pays taxes once on its profits, filed under personal income for each partner. Partnership are easy to establish, and with the additional associates, decisions can be made more economically. …show more content…
N.p., n.d. Web. 01 Sept. 2016. Provided information about nonprofits.
"Center for Cooperatives." Business Structure Comparisons. N.p., n.d. Web. 01 Sept. 2016. Provided comparisons between co-ops and nonprofits.
Question Four
The Sarbanes-Oxley Act of 2002, referred to as the SOX Act, was passed with the intention of curbing fraudulent accounting practices. In response to the many scandals proceeding 2002, such as those surrounding the Enron Corporation and WorldCom, this act of legislation demands full disclosure of the financial practices of a corporation in order to build investor confidence in financial statements and the market as a whole. The three main sections of the SOX Act are sections 302, 404, and 802. Section 302 demands that top management vouch for the accuracy of their financial statements. Section 404 establishes internal controls. This is extremely costly because setting up and maintaining these internal controls is not cheap. Section 802 deal with the actual reporting of accounting information. It describes three major practices involved with record keeping: destruction and falsification of records, holding period for records, and type of records to be stored. …show more content…
N.p., 2003. Web. 01 Sept. 2016.
Question Five
Insider trading is when someone sell or buys a security using knowledge that is not publically acknowledged. If the insider does the trading before the information is released, it is illegal; if they trade after the information is released, then it is legal. So, should insider trader be legal? The answer is a simple no. By using insider information, the trader gains an unfair advantage. And we live in a society that tries to be fair. If insider trading were to become legal, a lot of people would lose confidence in the market and may stop trading altogether since it would be rigged.
Question Six
Money Market: a place for the buying and selling of short-term securities
Capital Market: a place for the buying and selling of long-term securities
Primary Market: the place for incorporating new funds into the market
Secondary Market: the place for the resale of securities that has already been introduced into the market.
Question