Componies
- Submitted by: eliza9111
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- Category: Other
- Date Submitted: 02/26/2013 07:19 AM
- Pages: 10
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A business is an economic unit involved in the buying and selling of goods and services so as to satisfy the needs and wants of consumers profitably. Many factors and implications need to be taken into consideration before a business can be established, such as: the level of control the owner wishes to have over the business; tax implications of the business; expected profit (or loss) of the business. The different forms of business ownership are: sole trader; partnership; close corporation; companies.
A business is an economic unit involved in the buying and selling of goods and services so as to satisfy the needs and wants of consumers profitably. Many factors and implications need to be taken into consideration before a business can be established, such as: the level of control the owner wishes to have over the business; tax implications of the business; expected profit (or loss) of the business. The different forms of business ownership are: sole trader; partnership; close corporation; companies.
Business organizations
Sole trading business
Sole trader is a person who carries out the trade/ business single handily. He is the whole and soul of the business. Here are the features of a sole trader:
1. The business is owned or founded by one person.
2. The owner makes all the decisions in the business.
3. The owner obtains his/her capital sources and base from personal savings and from loans from friends and family.
4. The owner of a sole trader firm is responsible for all liabilities incurred by the business. This type of structure does not differentiate between the owner and the business.
5. All profits, expenses and losses belong to the owner.
6. Sole proprietors are not required to publish their annual statements but are however required to submit them to the Tax Office for income tax calculations.
Advantages of a sole trader:
* Control - Sole traders maintain full control of their business. Running it how they please...
A business is an economic unit involved in the buying and selling of goods and services so as to satisfy the needs and wants of consumers profitably. Many factors and implications need to be taken into consideration before a business can be established, such as: the level of control the owner wishes to have over the business; tax implications of the business; expected profit (or loss) of the business. The different forms of business ownership are: sole trader; partnership; close corporation; companies.
Business organizations
Sole trading business
Sole trader is a person who carries out the trade/ business single handily. He is the whole and soul of the business. Here are the features of a sole trader:
1. The business is owned or founded by one person.
2. The owner makes all the decisions in the business.
3. The owner obtains his/her capital sources and base from personal savings and from loans from friends and family.
4. The owner of a sole trader firm is responsible for all liabilities incurred by the business. This type of structure does not differentiate between the owner and the business.
5. All profits, expenses and losses belong to the owner.
6. Sole proprietors are not required to publish their annual statements but are however required to submit them to the Tax Office for income tax calculations.
Advantages of a sole trader:
* Control - Sole traders maintain full control of their business. Running it how they please...