EBK BUSINESS DRIVEN TECHNOLOGY
7th Edition
ISBN: 8220103675451
Author: BALTZAN
Publisher: YUZU
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Chapter B, Problem B1.1MBD
Program Plan Intro
Common business forms:
- Sole proprietorship:
- A single person is only owner and accountable for all profits and losses of business.
- It is quickest and easiest way for setting up a business operation.
- No specific costs are been associated with starting a sole proprietorship.
- A license cost of 25$ from local country clerk is enough for starting sole proprietorship
- Partnership:
- It permits for more than one proprietor.
- Each partner will be personally responsible for all profits as well as losses of business.
- No specific costs are been associated with starting a partnership.
- A partnership agreement denotes a legal contract between two or more business partners that would outline core issues in business.
- A limited partnership is like a general partnership apart from that it protects limited partner from responsibilities of losses.
- Corporation:
- It is an artificially formed legal entity that would exist separately, apart from persons who created and carry out operations.
- The business entity differs from business owners.
- A limited liability is delivered for shareholders in a corporation.
- The types of corporation includes:
- For profit corporations
- It focuses on making money; profits as well as losses are shared by business owners.
- Not for profit corporations
- It accomplishes some charitable, philanthropic or educational purpose.
- Profits as well as losses are not been shared by business owners.
- For profit corporations
Expert Solution & Answer
Explanation of Solution
Comparison of business forms:
| Sole proprietorship | Partnership | Corporation | |
| Licensing | Local license is needed, worth 25 $ only. | Partnership agreement and legal fees required | Incorporation articles by secretary of state. |
| Income | Profit flows into income | Distributed among partners as decided | Personal earnings and business remains separate |
| Liability | Owner is liable | Owners are liable | Business is liable |
Recommendation:
- A limited liability partnership is been recommended to Olivia for her business.
- It protects her from liabilities.
- If one person becomes a limited partner then liabilities may differ.
- Hence, partnership would be best option for Olivia.
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Chapter B Solutions
EBK BUSINESS DRIVEN TECHNOLOGY
Ch. B - Prob. B1.1MBDCh. B - Prob. B1.2MBDCh. B - Prob. B1.3MBDCh. B - Prob. B1.4MBDCh. B - Prob. B1.5MBDCh. B - Prob. B1.6MBDCh. B - Prob. B2.1MBDCh. B - Modeling a Business Process Do you hate waiting in...Ch. B - Prob. B2.3MBDCh. B - Prob. B2.4MBD
Ch. B - Prob. B2.5MBDCh. B - Prob. B3.1MBDCh. B - Prob. B3.2MBDCh. B - Prob. B4.1MBDCh. B - Prob. B4.2MBDCh. B - Prob. B4.3MBDCh. B - Prob. B4.4MBDCh. B - Prob. B4.5MBDCh. B - Prob. B4.6MBDCh. B - Prob. B4.7MBDCh. B - Prob. B4.8MBDCh. B - Prob. B4.9MBDCh. B - Prob. B4.10MBDCh. B - Prob. B4.11MBDCh. B - Prob. B5.1MBDCh. B - Prob. B5.2MBDCh. B - Prob. B5.3MBDCh. B - Prob. B5.4MBDCh. B - Prob. B5.5MBDCh. B - Prob. B5.6MBDCh. B - Prob. B6.1MBDCh. B - Prob. B6.2MBDCh. B - Prob. B6.3MBDCh. B - Prob. B6.4MBDCh. B - Prob. B6.5MBDCh. B - Prob. B7.1MBDCh. B - Prob. B7.2MBDCh. B - Prob. B7.3MBDCh. B - Prob. B7.4MBDCh. B - Prob. B7.5MBDCh. B - Prob. B7.6MBDCh. B - Prob. B7.7MBDCh. B - Prob. B7.8MBDCh. B - Prob. B7.9MBDCh. B - Prob. B7.10MBDCh. B - Prob. B7.11MBDCh. B - Prob. B8.1MBDCh. B - Prob. B8.2MBDCh. B - Prob. B9.1MBDCh. B - Prob. B9.2MBDCh. B - Prob. B9.3MBDCh. B - Prob. B9.4MBDCh. B - Prob. B9.5MBDCh. B - Prob. B9.6MBDCh. B - Prob. B9.7MBDCh. B - Prob. B9.8MBDCh. B - Prob. B9.9MBDCh. B - Prob. B9.10MBDCh. B - Prob. B10.1MBDCh. B - Prob. B10.2MBDCh. B - Prob. B10.3MBDCh. B - Prob. B10.4MBDCh. B - Prob. B10.5MBDCh. B - Prob. B11.1MBDCh. B - Prob. B11.2MBDCh. B - Prob. B11.3MBDCh. B - Prob. B11.4MBDCh. B - Prob. B12.1MBDCh. B - Prob. B12.2MBDCh. B - Prob. B12.3MBDCh. B - Prob. B12.4MBDCh. B - Prob. B12.5MBDCh. B - Prob. B12.6MBD
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