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LAWS20059 - Corporations and Business Structures - Report

13 Pages2849 Words180 Views
   

Central Queensland University

   

Corporations and Business Structures (LAWS20059)

   

Added on  2020-03-04

About This Document

 

LAWS20059 - This report states the advantages, disadvantages, and scope of both the structures that are sole trader and corporation. This report further states whether a sole proprietorship is appropriate for penny Greyor not. Lastly, this paper is concluded with a brief conclusion.

LAWS20059 - Corporations and Business Structures - Report

   

Central Queensland University

   

Corporations and Business Structures (LAWS20059)

   Added on 2020-03-04

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Running Head: Law 1Law
LAWS20059 - Corporations and Business Structures - Report_1
Law2Executive summary:Sole proprietorship is the business structure which does not have separate existence from itsowner. Owner is responsible independently for all the aspects related to the business. On theother hand, Corporation is the structure which has separate legal existence from its members.This report contains various factors which defines both sole proprietorship and corporation. Italso states the advantages and disadvantages of both the structures, and which structure isappropriate as per the needs of the Penny Grey.
LAWS20059 - Corporations and Business Structures - Report_2
Law3ContentsIntroduction:....................................................................................................................................4About sole proprietorship:...............................................................................................................4Advantages of sole trader:............................................................................................................5Disadvantages of Sole proprietorship:.........................................................................................6Corporation:.....................................................................................................................................9Conclusion:....................................................................................................................................10
LAWS20059 - Corporations and Business Structures - Report_3
Law4Introduction:A sole trader is the structure under which individual is responsible to conduct the operations ofthe business. For example- sole trader is not able to share debts and losses of the business withothers, and they enjoy all the profits of the business. This business structure is the simplest andinexpensive form of structure which can be chosen by the individual at the initial stage of thebusiness. Context related to corporation is completely different from sole proprietorship becausemembers of the corporation are the owners and business is managed by the directors (Business,2017). This report states the advantages, disadvantages, and scope of both the structures that is soletrader and corporation. This report further states whether sole proprietorship is appropriate forPenny Grey or not. Lastly, this paper is concluded with brief conclusion. About sole proprietorship:Generally, Sole proprietorship is the business structure which has no separate existence from itsowner, and income and losses of this structure are taxed under the personal income tax return ofthe individual. This form of business is simple to operate, and under this structure individual is responsible toconduct the operations of the business. Usually, sole proprietorship refers to the individual whois considered as the owner of the business, and such individual is personally liable for the debtsof the business. This form of business is operated under the name of the owner of the business,and owner can also conduct the business under fictitious name. It must be noted that suchfictitious name does not separate the business from the owner (ALG, n.d.).
LAWS20059 - Corporations and Business Structures - Report_4

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