Lit Task 1

In: Business and Management

Submitted By tiaregomes
Words 1038
Pages 5
Tiare Gomes
Business Marketing Management
April 2013

Task 1 (310.1.2-01-06)

SOLE PROPRIETORSHIP: The Sole Proprietorship is a business owned completely and solely by one person. It is easy to start this type of business because legal formalities are minimal. Sole Props are popular amongst small businesses or start-ups because of this simplicity. Business taxes are done all under one filing (the owner files his taxes normally with the form 1040 and a schedule C) and all gains and profits belong to the owner alone without having to pay or share with shareholders or co-owners. This can either be a plus, or a minus depending on the situation. Because the owner has the right to all gains, he or she is also responsible for all liabilities as well. If the business goes under or goes into debt, then his or her personal assets are at stake. In addition, if the business owner dies unless there are pre-arrangements made in the form of a will, the business dies with the owner. More about the advantages and disadvantages to follow:

* LIABILITY: The owner is financially liable for everything with regards to the business, without limitation. If their business fails or falls into debt, the creditors can come after personal assets. * INCOME TAXES: The business owner and the business is taxed together. The business owner would file a 1040 with a schedule C along with it. All profits are considered personal income. On the bright side, all business items can reduce the taxable income by charging off costs as “expenses”. * LONGEVITY/CONTINUITY: If the business owner dies, then the business dies with him/her unless explicitly stated in the last will and testament. If the owner decides that he/she no longer wants anything to do with the business, then they can just close or resolve the business without having to consult with partners, or liquidate assets.…...

Similar Documents

Lit 1 Task 1

...LIT 1 Task 1 PART A Sole Proprietorship Sole Proprietorship is a business owned by one person, as distinguished from a partnership or Corporation. Sole proprietorship is a company, which is not registered with the state as a limited liability company or corporation. Some advantages of a sole proprietorship are that they have flexibility in operations. The sole proprietorship business is undertaken on a small scale. If any change is required in the operations, it is easy and quick to bring the changes. Another advantage in this type is the ease of promptness in decision-making, autonomy. When the decision is to be taken by one person, it is guaranteed to be quick. Thus, the entrepreneur, as a sole proprietor, can arrive at quick decisions concerning the business because he does not have to ask anybody else. There is only one person that makes decisions, therefore, there is no other to criticize, or challenge a decision made. A third advantage is the simplicity of the business. Because of this, it is the most common type of business entity. The only difficulty of this business type is obtaining licenses and permits in the state of operation. If the business will be run under a different name than that of the individual who owns it, a separate special certificate must be filed. Sole Gain is seen as a highly ranked advantage because all revenue goes back to the single investor, the entrepreneur. There are no shareholders to declare dividends. The primary advantage for a...

Words: 1754 - Pages: 8

Lit 1 Task 1 Part a

...TASK 1 (PART A) LIT 1 SOLE PROPRIETORSHIP: The owner and the business are considered one. The owner takes all the risk and receives all the profits. It is easy and inexpensive to start up a sole proprietorship however a sole owner has trouble raising capital which could limit growth. • LIABILITY –If the business fails the owner is financially responsible and my lose everything. • INCOME TAXES – The proprietor and the business are taxed together. • LONGEVITY/CONTINUITY – The business dies with the sole proprietor. • CONTROL – There is no boss the owner has total control over the operations. • PROFIT RETENTION – All of the profits are considered personal income of the sole proprietor. • LOCATION – The owner can move or expand the business as they see fit they are easy to set up and work in any setting appropriate for the business. Most sole proprietorships are home based or have small offices and storefronts. GENERAL PARTNERSHIP: is a business owned by two or more owners. In General partnerships each partner is fully active in the firm giving input in management and each partner is fully liable for the debts of the business. • LIABILITY – Each partner assumes unlimited liability for the debts of the business and can be held totally responsible for debts and malpractice committed by any of the partners. • INCOME TAXES – A partnership is a pass-through entity, not a separate taxable entity, and no federal income tax is imposed on the business itself. Each......

Words: 1231 - Pages: 5

Lit Task 2

...LIT Task 2 LIT Task 2 The Family and Medical Leave Act (FMLA) of 1993 is a federal law to provide employees time off of work for due to medical and family reasons. Reasons include: the birth or adoption of a child, an employee’s grave medical condition which prevents the employee from doing his/her job, or attending to the serious medical condition of a child, parent, or spouse. This leave is unpaid and requires employees to have been employed with the employer for at least one year. The employee is permitted to maintain health insurance during the duration of the leave. In the first scenario, the employee, who had worked for the company for two years, took family medical leave because his wife gave birth to premature twins. The employee returned to work a week early, per request. He was permitted to return to his position with his same rate of pay. The employee does not think is fair that he did not receive pay during the time he was on family medical leave. Lastly, the scenario includes that there is a new department manager. The employee rightfully received the leave time because he was employed with the company for at least one year and had a legitimate excuse. He was rightfully given back his job position and rate of pay as specified in FMLA regulations. The company was right in this case not to pay the employee for the eleven week leave. The only way for him to receive any sort of pay was if he had any sick or vacation time that could be cashed......

Words: 603 - Pages: 3

Lit 1 Task 1

...Sole Proprietorship: Liability: The entire enterprise and all resources are owned and controlled by the owner. Any debts of the enterprise are the owners debts and must be paid from the owners personal funds. The proprietor is infinitely liable. Income Taxes: The proprietor must pay self employment tax. The business is will not be independently taxed and any income or lack of income must be reported on the owners tax return. The companies earnings must be taxed as well. Longevity or Continuity of the Organization: Considering most of the Owners funding comes from their personal assets, Sole Proprietors usually have a limited longevity. This can also affect the business’ future growth. Control: The owner is in full control of the company. The owner has all the power in the running of the business. Profit Retention: Legally the company and the owner are the same so any earnings the company makes belongs to the Sole Proprietor. Sole Proprietorships usually leave the owner with the most profit. Location: Sole Proprietorships hardly have any location regulation. Some area laws do require a DBA certificate. This certificate can be obtained through the county clerk’s office typically. Convenience or Burden: a sole proprietor is in full control of the company, selling of, or transferring company ownership is at the owners full discretion. There are no corporate taxes. Investors normally do not invest funds into these companies due to the lack of corporate......

Words: 1575 - Pages: 7

Lit Task 1

...LIT t Carlos Alvarez Student ID # 000224916 Western Governors University LIT1 Task 2 310.1.5-02, 11, 13 Situation A The Family and Medical Leave Act of 1993, states that all companies with 50 or more employees must offer an unpaid leave of absence to employees to take care of the birth or adoption of a child, personal, or family illness. An employee must have a minimum of 12 months of continuous employment or at least 1,250 hours on the job. Under the act, an employee may take up to 12 weeks off on an unpaid leave. In accordance to the act, the employee will be allowed to return to their previous job, at their previous rate. If for some reason their job was occupied, we must provide the employee with a different position at the same pay rate as their previous job. Our company currently employees over 75 workers; therefore, we must comply with act. We must also comply with The Family and Medical Leave Act of 1993 because the Employee A has been with the company for more than 12 months. The fact that his wife gave birth prematurely has no effect on the employee’s request. The request for Employee A to return to their previous job with their previous pay rate has been rightfully granted, because the employee meets the requirements stated in The Family and Medical Leave Act of 1993. If the position has been occupied, then we must give the employee a different position with the same pay rate. In regards, to Employee A’s request for the pay that was......

Words: 1221 - Pages: 5

Lit Task 1

...The Different forms of business organizations can be a very confusing topic for many business owners. There are many different types of organizations including, but not limited to, Sole Proprietorship; General Partnership; Limited Partnership; C-corporation; S-corporation; and Limited Liability Company. Each type of business organization has its own benefits, drawbacks, and restrictions. This report will summarize each type of business organization and explain the drawbacks and benefits in a clear, concise, and easy to understand way. Sole Proprietorship A Sole Proprietorship is exactly what it sounds like. It is a company that is owned solely by an individual. It may need to be registered with the Secretary of State within the state that the company is owned and operated. This is required if the following conditions apply: * The company is run under a fictitious name (i.e. Marriage Makers, Simply Savings, or Tasty Treats). * The business provides services or goods that require licensure (i.e. Insurances, alcohol, or food). A Sole Proprietorship is not differentiated from the owner which is why, if the above stated criterion does not apply, the business is not required to register with the Secretary of State. The money that is made from the business belongs solely to the owner. For the same reason, the debt that is accumulated by the company is the sole responsibility of the owner. This circumstance makes it possible for a debtor to sue the owner of the......

Words: 3253 - Pages: 14

Lit Task 1

...Definition. (n.d.). Retrieved August 9, 2014, from USLegal.com: http://definitions.uslegal.com/c/c-corporation/ General Partnership. (n.d.). Retrieved Auust 09, 2014, from www.business.ca.gov: http://www.business.ca.gov/StartaBusiness/DefiningaBusiness/GeneralPartnership.aspx Limited Liability Company (LLC). (n.d.). Retrieved August 09, 2014, from www.incorporate.com: http://www.incorporate.com/limited_liability_company.html Single Member Limited Liability Companies. (n.d.). Retrieved August 9, 2014, from http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Single-Member-Limited-Liability-Companies Sole Proprietorship. (n.d.). Retrieved August 9, 2014, from www.sba.gov: http://www.sba.gov/content/sole-proprietorship-0 LIT1 Task 2 Memorandum To: Company X Owner From: Lenn Baxley RE: Recommendations form Business Model Date: 27 July 2014 The concern of changing a business model in include business partner, changing control or even changing who is responsible can be a big decision. I would recommend that the company’s owner switch to S-Corporation. This business model all the companies credits, losses, and income pass through the board of the directors. This board of directors or shareholder is limited to 100 United States citizens or legal aliens. Below are the reasons that this model would best fit the needs of the owner. Federal Taxes The government is going to get its share of the taxes however to minimize the amount this model has the company......

Words: 2290 - Pages: 10

Lit Task 1

...LIT1: Task 310.1.2-01-06 Part A: Sole Proprietorship: is the most common business structure. The business is not a separate entity from the proprietor which makes autonomous. Liability - if you enter into a sole proprietorship, you have unlimited liabilities associated with your business. You will be liable to the full extent of your assets for any business liabilities. Income taxes - as a sole proprietor, when you file taxes, you would file it under your own personal income taxes. Sole proprietor do not have anyone withholding their taxes. You do have to keep me in mind that as a sole proprietor you are responsible for budgeting you tax liabilities. Continuity of the organization - as a sole proprietor, when you die, the business dies. Control - as a sole proprietor, you have total control of the business. As the sole owner, you do not share any responsibilities with anyone else. Profit retention - as a sole proprietor, any profit made from the business would only be distributed to the sole owner. There are not partners associated with sole proprietorship. Expansion - as a sole proprietor, you have autonomy or flexibility with your business. Since sole proprietors are not seen as legally separated from their business, the ease of expansion is uncomplicated. Compliance - there are minimal reports you have to file with the government and there is no restrictions on the operations of your business. General Partnerships: is a partnership that is formed with two...

Words: 1827 - Pages: 8

Lit Task 1

...policies, and then elect officers to carry out those policies. In the case of smaller, more closely held corporations the officers might be the directors, and might be the only stockholders of the corporation. Ultimately, the title of 'owner' is held by the corporate entity. • Profit Retention-The board of directors will decide the amount of profit to be kept, and the amount to be payed in dividends. • Convenience/Burden- A corporation must operate under the state's statutory laws in which it incorporates. The corporation must also comply with federal law if it operates in another state, in addition to any and all states the corporation does business in. S-Corporation-A corporation that elects to be taxed under the Sub chapter S Chapter 1 of the Internal Revenue Code. • Liability-The liability is limited only to what shareholders initially invested. • Income Taxation-The corporation is not taxed because all taxation is passed through to the stockholders, and taxed at the personal income level, which allows for stockholders to offset against current income. • Longevity/Continuity-A corporation can continue on indefinitely,no matter if certain stockholders, directors, or board members should pass away. • Control-There can be no more than 100 stockholders in this type of corporation. The rest is the same as a C-corporation. • Profit Retention- All income is taxed to shareholders, and their portion of the profit is determined by how many stocks they......

Words: 1903 - Pages: 8

Lit 1 Task 1 - Business Law

...cannot perform their job duties due to serious health issues. Military Service - Hardship resulting from spouse, child, or parent who is an active member of the military and is called into active service / deployment. Family Health Condition - Employee must care for a seriously ill or infirm spouse, child, or parent. Children - The birth of a child or adoption /foster child placement in employee's care. Case Evaluation Under the provisions of FMLA, Company X, granted a leave of absence (LOA) request to Employee A so that he may be with his spouse, who had prematurely given birth. The employee's request was approved by his then current manager who correctly determined that he was eligible for leave based upon the following two factors, 1) his length of employment (24 months) and 2) his personal circumstances (the birth of a child / serious medical condition of a spouse). FMLA provisions clearly acknowledge the employee's work history and qualifying life event as being valid and, in turn, Company X complied with said provisions by providing the employee with 12 weeks of unpaid leave. After 11 weeks on leave, the employee contacted his new department manager and asked to return to work. In accordance with FMLA provisions, the employee's manager approved his return to work date and acknowledged that he would return to the same pay, title, and job function. Employee A also requested back pay for his 11 week leave. His manager denied his request. Findings After careful......

Words: 1444 - Pages: 6

Lit 1 Task 1

...Sole proprietorship: A sole proprietorship is a business organization, which is owned by a single individual. The individual makes all decisions for the business without having to consult with other employees or departments. There are many advantages in sole proprietorships. First off, sole proprietorships are easy to create. The owner simply starts doing business by providing goods or services and charging for the goods and services provided. In addition, the owner makes all decisions concerning the business and how it is operated. Another key advantage is complete autonomy, meaning the owner can set his or her hours of operation and utilize the finances. Sole proprietorship can only have one owner, meaning it is impossible to bring in others into the business, also if the owner dies or passes away the business does the same. It can be difficult to raise capital for a sole proprietorship. In most cases, if the entrepreneur is not wealthy, he or she will need to seek funds from outside source, for example a bank where they will treat the funds as a personal loan. • Liability: A sole proprietorship has unlimited liability, which means the owner is personally liable for any and all obligations and debts of the business. Creditors have access to all personal assets, meaning, personal homes, bank accounts, automobiles etc. are all within reach for creditors. • Income Taxes: A sole proprietorship pays income taxes on the business income, which is reported on the......

Words: 732 - Pages: 3

Wgu Lit 1 Task 1

...Task 1 Situation A The Family and Medical Leave Act of 1993 has many provisions but 3 major ones are that all employees of an organization of 50 or more employees working more than 20 hours per week be given a minimum 12 weeks of time off for domestic responsibilities each year. Those responsibilities include; the birth of a new child, the care of an immediate family member with a serious medical condition or the adoption of a foster child (US Department of Labor). Under the Act the employer must maintain the employees’ health insurance and employment status during that time frame. If the employee’s current position is no longer available a position of equal pay must be found. To qualify, the employee must have worked for the organization for 12 month and have worked 1250 hours in the 12month preceding the leave. The Family and Medical Leave Act of 1993 does apply to Situation A in almost every aspect except for one, the paid leave portion. In situation A, the employee was given 11 weeks off from work after being employed for 2 years for the birth of a child. Upon returning to work after 11 weeks the employee was given his job back and at the same rate of pay. The Family and Medical Leave Act of 1993 require that unpaid leave be given and the employee me be given up to 12 weeks off in a 12 month period or 26 weeks for the care and/or return of a veteran. In situation A, No violation occurred because The Family and Medical Leave Act of 1993 states that the employee......

Words: 903 - Pages: 4

Lit 1-Task 2

...LIT1 - Task 2 Mark J. Fortenberry May 9, 2015 LIT1 - Task 2 Company X has reported three situations that have occurred that require investigating. Since employment and hiring practices are a part of my duties here at Company X, I have been charged with the investigation into these situations. In the subsequent report, the laws that companies must abide by will be outlined and how these laws affects the outcome in each of these three situations. The Family and Medical Leave Act of 1993 is one that ties in heavily to the first situation. “The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year” (Solis, N.D.). This leave must be for the birth and care of a newborn, placement of an adoption, to care for an immediate family member, or for an employee that has a serious health condition. For qualification, an employee must have at least 12 months of continuous employment with 1,250 hours worked within that 12 months. This issue involves said Company X and an employee that will be identified as Employee A. Under the FMLA, both company and employee must meet the requirements under the law. As an example, Company X must have at least 50 employees, while in reality, the company has over 75 employees. Employee A needs to have worked for Company X for at least 12 months and at least 1250 hours within that 12 months; the employment length for Employee A has been 24 months and met the......

Words: 1452 - Pages: 6

Lit 1 Task 2 Labor and Employment Laws

...LIT 1 TASK 2 LABOR AND EMPLOYMENT LAWS To purchase this visit here: http://www.activitymode.com/product/lit-1-task-2-labor-and-employment-laws/ Contact us at: SUPPORT@ACTIVITYMODE.COM LIT 1 TASK 2 LABOR AND EMPLOYMENT LAWS LIT 1 Task 2 Labor and Employment Laws Activity mode aims to provide quality study notes and tutorials to the students of LIT 1 Task 2 Labor and Employment Laws in order to ace their studies. LIT 1 TASK 2 LABOR AND EMPLOYMENT LAWS To purchase this visit here: http://www.activitymode.com/product/lit-1-task-2-labor-and-employment-laws/ Contact us at: SUPPORT@ACTIVITYMODE.COM LIT 1 TASK 2 LABOR AND EMPLOYMENT LAWS LIT 1 Task 2 Labor and Employment Laws Activity mode aims to provide quality study notes and tutorials to the students of LIT 1 Task 2 Labor and Employment Laws in order to ace their studies. LIT 1 TASK 2 LABOR AND EMPLOYMENT LAWS To purchase this visit here: http://www.activitymode.com/product/lit-1-task-2-labor-and-employment-laws/ Contact us at: SUPPORT@ACTIVITYMODE.COM LIT 1 TASK 2 LABOR AND EMPLOYMENT LAWS LIT 1 Task 2 Labor and Employment Laws Activity mode aims to provide quality study notes and tutorials to the students of LIT 1 Task 2 Labor and Employment Laws in order to ace their studies. LIT 1 TASK 2 LABOR AND EMPLOYMENT LAWS To purchase this visit here: http://www.activitymode.com/product/lit-1-task-2-labor-and-employment-laws/ Contact us at: SUPPORT@ACTIVITYMODE.COM LIT 1 TASK 2 LABOR AND...

Words: 381 - Pages: 2

Lit 1 Task 1

...Irish emigration across the Atlantic began long before 1800. In the 1600s, approximately 25,000 Irish Catholics left – some were forced to move, others left voluntarily – for the Caribbean and Virginia, while from the 1680s onwards Irish Quakers and Protestant Dissenters began to depart for the New World. Considerable Presbyterian emigration from Ireland's northern Province of Ulster took place from the 1710s onward, alongside smaller Anglican Protestant and Catholic emigration from Ulster and the southern province of Munster. This pattern continued until the end of the Napoleonic Wars in 1814. Ireland had benefited considerably from price rises associated with war on the European Continent, only to suffer as a result of the drop in export price levels following the Battle of Waterloo. From 1815 to the start of the Great Irish Famine (1846–1852), between 800,000 and one million Irish sailed for North America with roughly half settling in Canada and the other half settling in the United States. Significantly, no other European country contributed as many emigrants per capita to the New World as Ireland during this period. Until the early 1830s, Protestant departures exceeded the number of Catholics leaving Ireland. Thereafter, Catholics greatly outnumbered Protestants. The demise of the cottage spinning industry in the first half of the 19th century – especially from the early 1830s onwards – led to a massive displacement of workers. Nonetheless, the rise of the linen industry...

Words: 1704 - Pages: 7

Computer Concepts - 634 Words | 100 Stück ProtMask®-/Atemschutzmaske FFP 1, Feinstaub-/Partikelmaske EN 149:2001 | 13.04.1812:12 Uhr Planet der Affen - Survival Science Fictionx265 0 / 02.424 Hits VID P2P DDL 0 Kommentare