Sole proprietorship

Generally Accepted Accounting Principles The Standards issued by the policy-setting policies are known as the Generally Accepted Accounting Principles (GAAP). These principles address recognition, measurement and disclosure of economic activity. Recognition occurs when an entity records an item on the financial statements or source documents, measurement addresses how the item is recorded in the financial statement, and disclosure involves items that are not recorded in the financial statements.…

These startup mistakes can mean the death of your business before it even gets off the ground. Avoid them at all costs, and make sure you get sound legal advice at the beginning even if it makes a dent in the budget. 1. Prior Employer 's Workplace When starting their own company, many startups might work at their employer 's facility or on their employer 's computers. If you work in an industry that has intellectual property rights, and you signed an agreement when you started at your job,…

concerns we previously spoke about with regard to the possibility of a change in the business organization and what that might entail. Some of your main concerns as a business owner are in regards to the risk and liability that accompany a sole proprietorship. Some of those concerns were: the possibility of an increase in having a backlog of work and having to hire outside workers. Installation errors going wrong and causing an injury, licensed drivers getting into accidents, and workers…

Limited liability companies (LLCs) offer business owners several advantages over sole proprietorships, partnerships and in some cases S and C corporations. Business operators who take advantage of LLC business formation can realize significant financial benefits and can also use living trusts to facilitate exchanging limited liability company ownership more easily relative to using a will. LLCs offer the asset protection enjoyed by corporate entities, are less expense to maintain and require…

Organization Law When deciding to incorporate in Delaware a business owner may register their business as a corporation, limited liability company (LLC), professional service or a nonprofit association. Although, a business owner may open a sole-proprietorship or a partnership these choices will not be considered because they do not provide limited liability protection for the business owner. Limited liability is protection to the business owner just like a corporation. Business owners are…

Exclusive summary The DTS or acknowledged as the Driving training school permits individuals learning to drive. The service of the driving training school is divided into the practical and the theoretical training for drivers. The greatest part in running the DTS is the gap in the market, where there is less competition and no specific concentration although there is a demand for the service. Throughout the report, I will be discussing the financial aspects, the operations and marketing…

interesting way of looking at our class system. Near the top of our class system we have the capitalist class. The capitalist class is made up of owners of businesses. According to Zewig, it doesn’t really matter if you are the owner of a small, sole proprietorship which only employs five people or if you are the head of a corporation which employs thousands. At the end of the day, you are a capitalist. The difference, however, lays in the classification; you can be a large capitalist or a small…

tax status and the safety of liability protection of a corporation. This would allow her to only be taxed once like a sole propriety or a partnership, which helps small-business owners keep their earnings. However, remove the personal liability as any action against the business can only act against the business and not Shania herself in most cases. Which with a sole proprietorship if the business where to get sued, Shania would have to cover anything over the assets of the company as well.…

Demand in the market economy is clarified as purchaser's desire and capability to consume a specific merchandise. Expand in cost will reduce the amount of goods given. A decrease in price will increase the quantity demanded of most goods. The reciprocal relationship between cost and the amount of goods identified as the demand of law and is normally act of a slopped line going downwards which can be identified as the demand curve. The demanded curve displays that the quantify demanded of a…

$273,000 Total Equities: $273,000 “Under the proprietary theory, financial reporting is based on the premise that the owner is the primary focus of a company’s financial statements. The proprietary theory is particularly applicable to sole proprietorships where the owner is the decision maker,” (Schroeder, Clark, & Cathey, 2014, p. 516). Proprietary Theory Income Statement: Revenues: $450,000 Cost of Goods Sold: $220,000 Gross Profit: $230,000 Operating Expenses: $64,000…