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Week 2 Checkpoint - time of distribution the profit is...

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Proprietorship means that a single person or entity owns a business. A person, who has exclusive rights to all aspects regarding a business, has the rights to all financial gain. A partnership is different, this is a business that is owned or controlled by more than one person. These partners share financial gain and loss. Partnerships are favored more than Corporations because of taxation purposes. Profits are not taxed before being distributed among Partners. Corporations exist solely on shareholders; they exchange money, property or other financial means to gain control of company stock. Profits paid to the corporation are taxed and then distributed evenly among the shareholders, at the
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Unformatted text preview: time of distribution the profit is taxed again, commonly known as dividends. Therefore, the profit is double taxed. When creating a business, I would want to gain substantial financial growth; my thought would be a Partnership. I wouldn’t want too many hands in the pot. It would be a small firm with just the right amount of employees, looking to build a clientele. A design business where I can advertise our companies previously completed product design on the internet. Gaining profits that can be shared equally with my partner in crime, my mom....
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