Doha Sports' Management, Control, Liability, and Taxation - Research Proposal Example

Task: Business Proposal Part I The objective of the business is to provide sporting merchandise labeled as Doha Sports. The major defining aspect of the business is provision of merchandise using an online platform that ensures flexibility. In order to attract customers, the business would offer high quality goods at a relatively low price. Additionally, the shop would enable its customers to survey the goods online and compare their prices with other shops. This would save them the time spent when moving to shops looking for goods (Chambers 5). Doha sports shop intends to provide house delivery services to its clients with a busy schedule. This service is important because it would reduce expenses for clients and control air pollution as clients would not have to drive to the shop. The main target market for Doha Sports shop is online buyers who are time conscious. Additionally, the organization targets athletes who participate in major events such as London Marathon or Olympics. The business would also target people aged between 18 -35. This is because most people within such an age group are active in sports, have busy schedule and spend more time surfing online (Chambers 10). The company has hired the services of online experts who are experienced in virtual businesses. Additionally, the company sells its brand of goods at an affordable price. It is also evident that the strategy would enable the business to outshine its major competitors such as Reebok, Nike, and Adidas (Chambers 17). Part II Business Entity and Owners The best form of business that Doha sports shop can operate is Partnership. Unlike sole proprietorship, a partnership is owned by several members but should not exceed twenty four. A significant advantage of partnership is the ability to allow a firm to operate independently from the owners. This simply means that incase one members dies or quit, the business would still operate. Doha sports would benefit from partnership because the owners would raise enough capital to start and run the business. Additionally, the partners can share losses in case of any unintended consequences. Lastly, the partners can take part in running the business thus saving time and cost of operating the business in case they were to employ someone to run the business. The business can grow to a corporation. Consequently, it can be quoted in the stock exchange market. This would enable Doha sports shop improve its image, sale its shares in the stock market and expand internationally (Chambers, 55). Size of the Business Doha Sports Shop should have several stores around the country besides the online platform. For example, the firm should have various shops around major clubs, towns, stadiums and other sport centers. This would enable the firm to meet many customers and improve the volume its sale. The firm would make more profits and beat its rivals. In the event that Doha Sports Shop opens several branches around the country, it would lead to reduction in cost of operation, enlarge their markets and maximize their profits. Due to the size of its business operation, the firm should offer its goods at a lower price and concentrate on a small segment of the market as it establishes itself in the country. This would enable the company to create loyal customers and expand its market. Lastly, the company should use differentiation strategy as it conducts operations. This would enable the firm to adopt in a new competitive environment and embrace changes (Chambers 90). Management and Control of the Business Doha Sports shop would have to elect or agree among the partners who would be running the business on daily bases. Such partner would have to be paid more in terms of dividends in case the firm makes profits. Other dormant partners would be paid in accordance to the capital they have contributed (Chambers 125). The members have equal voting rights in case a decision has to be made. This means one man one vote. However, there are instances when the vote of each member would be proportional to the amount of capital they have contributed (Chambers 145). Doha Sport can only be dissolved under the following conditions; in case one of the major partners dies. This is a partner who has contributed more capital. In the event he dies, the business would have to be dissolved. The firm may be dissolved when it engages in illegal business. Additionally, the government may order its dissolution; all members may agree to dissolve it when firm becomes bankrupt. Lastly, the dissolution may arise when the court orders it to dissolve (Chambers 177). Liability of the Business Liability of Doha sports house is dependent on liability of its partners. In case the members are general partners, they would accept full ownership and responsibility of the business. This means that incase the business has a dept, their personal properties may be used to offset the dept. However, limited partners do not have personal liability beyond the capital they have contributed. This means their personal properties cannot be used to offset any dept (Chambers, 235). Doha Sports Shop should nominate some partners to be general partners while other members should have limited liabilities. General partners would be charged with daily running of the firm while limited partners do not carry out any activities for the firm. General partners have more say in the business and earn more profits compared to limited partners (Chambers, 243). Taxation of the Business Generally, the law does not consider the partners separate from the firm. This simply means taxes are passed to partners who deduct the taxes from their shares of profits. Each partner’s share of profits is usually written when forming the partnership. The resultant figures are used to calculate the taxes for the business to pay. The business would have to fill a tax return form to ascertain that it complies with rules and regulation for taxation. Because Doha Sports does not have anyone to compute taxes or withhold it, each partner would be required to set aside enough cash to pay taxes that is calculated on his annual profits (Chambers 277). Source: Google Images Works Cited Chambers, K D. The Entrepreneur's Guide to Writing Business Plans and Proposals. Westport, Conn: Praeger, 2007. Print. Read More