Unit 1 - Assignment 1

Unit 1 - Assignment 1 - successful as they have had to...

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Sole Proprietorship I have a neighbor who used an inheritance to build a self car wash next to the local gas station. He is able to run the business by himself so has very little overhead. This works well as he is able to work his own hours and receives all profit from the business. The downfall is when things break or he runs out of supplies, he has the full expense to repair or replenish and loss of income until they have been completed. Partnership I have two friends that formed a partnership to run a business as funeral escorts. They were able to pool their abilities as one is able to market their services while the other is able to maintain the equipment. They used their combined credit to get the startup money to buy the motorcycles and have them outfitted to match along with getting matching uniforms. This business has been
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Unformatted text preview: successful as they have had to expand and hire on employees. The downfall to the partnership is that one of them had to move out of state to take care of family and the partner left running the business is resentful that he is doing all of the work but only getting half of the profit. Corporation I have a friend who owns a plumbing business that is set up as an “S corporation”. This is a good business plan for him as it protects his personal assets from any liabilities that the business incurs. This also allows him to file his business taxes as a partnership instead of having to pay separate business and personal tax. It also allows him greater choices in loans for the business giving an easier opportunity for growth as needed....
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This note was uploaded on 05/04/2011 for the course BUS 105 taught by Professor Unk during the Winter '10 term at AIU Online.

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