To dissolve a sole proprietorship you need only to

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Unformatted text preview: (a zoning regulation). Also, you need to register the name of the business with local governmental officials. To dissolve a sole proprietorship, you need only to stop doing business. 2. All decision-making power resides with the sole proprietor. If you are the owner of a sole proprietorship, you alone can make all the business decisions. Having no stockholders or partners means that you decide whether to expand your business, buy more supplies, advertise on the radio, and so on. Decisions can be made quickly and easily, since only one person counts—the sole proprietor. 3. The profit of the firm is taxed only once. Among the different types of taxes in the United States are sales taxes, property taxes, corporate income taxes, and personal income taxes. If you are the owner of a sole proprietorship, the profit you earn is counted as your income, and only personal income taxes (taxes paid on your income) apply. Proprietorships do not pay corporate income taxes (taxes paid on a corporation’s profits). As you will see, neither do partnerships. Only corporations pay corporate income taxes. 07 (154-185) EMC Chap 07 5/8/06 4:53 PM Page 161 Should NASCAR Be Required for an MBA? ??? I t is the fastest growing sport in America. It is the second most watched sport on television, trailing only pro football. What sport is it? It’s NASCAR—National Association of Stock Car Auto Racing. * What explains the popularity and rapid growth of NASCAR? Some have suggested that it’s the danger and drama associated with cars reaching speeds of 190 miles per hour, and life-and-death, win-or-lose decisions being made in milliseconds. Or maybe—just maybe—it is the economics of competition and cooperation that is visibly noticeable on the racetracks. The same qualities that a driver needs to win stock car races are the qualities one needs to win in the business world. Let’s see if we can identify these similar qualities. At the longer stock car tracks, such as Daytona and Talladega, the way to out-compete your opponents is to out-cooperate them. Specifically, the way to win is to enter into a “draft partnership” with other drivers. In the 1960s, drivers learned that if one stock car closely followed another, both cars increased their speed. Two cars traveling together in what is called a draft line go faster than a single car traveling alone. Drafting explains why you will sometimes see as many as 10 cars, one right behind the other, racing around the track for long periods of time. When drivers are “drafting,” they are cooperating with each other. At a certain point in the race one car in a draft line will form a partnership with another car to pass the front car. The formation of this partnership will often allow a car to pass what was the front car. What we see in these instances is one partnership breaking up and others being formed. The same lesson presents itself in the business world. In the early days of the computer business, Microsoft and Cisco form...
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This document was uploaded on 01/16/2014.

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