Nobody downloaded yet

Small-Business Idea Paper - Essay Example

Comments (0) Cite this document
Small business idea Introduction Different forms of business organizations exist for small size enterprises and different features, advantages and disadvantages, and legal, accounting, tax and other implications, characterize each form. It is therefore prudent that an entrepreneur understands these factors, for each form of business, before selecting the form in which to invest…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
Small-Business Idea Paper
Read TextPreview

Extract of sample "Small-Business Idea Paper"

Download file to see previous pages Advantages and disadvantages of sole proprietorship Sole proprietorship is the most popular and the longest practiced form of business organization. Some of its advantages are the ease with which it can be established and the ease with which it can be wound up. The processes are cheap, and are free from legal formalities because only establishing a business requires registration of business name and work permit. The proprietor is entitled to all profits from the business and this motivates efforts for a successful venture. Pride in the proprietorship’s success is another advantage of the form of business organization and acts as an incentive among sole proprietors. This further facilitates healthy competition among players in the form of business organization and has positive impacts on macroeconomic aspects such as gross productivity level of an economy. Simple approach to tax that treats business revenue as the proprietor’s income, is another advantage because of the low tax rates and ease of filing tax returns. The form of business is also flexible because the proprietor is the boss. Ease of decision making due to lack of formal or moral obligations for consultations is another advantage (Pride, Hunges and Kapoor, 2011). Despite the many advantages, sole proprietorship has many disadvantages. The business has unlimited liabilities and this means that the proprietor’s personal resources can be seized to settle business’ debts. The enterprise’s life is also limited to that of the proprietor and capital base are limited because of lack of sufficient security for accessing capital. The owner also suffers all the losses and this may be significant to affect sustainability (Pride, Hunges and Kapoor, 2011). Types of financial statements for each form of business organization Financial statements for a sole proprietorship form of business are income statement, balance sheet, cash flow statement, and statement of owner’s equity. Income statement outlines costs and expenditure in the merchandise processes towards determination of net profit. Statement of owner’s equity traces, and accounts for, a business’ accumulated capital while the balance sheet offers an account of the business’ financial position by accounting for the assets and their sources. The statement of cash flow accounts for cash receipts and payments within an accounting period. The financial statements also apply to other forms of business organizations but their contents vary in complexity. Accounting for partnerships however includes partnership account besides these (Warren, Reeve and Duchac, 2011). Consequences of tax and legal implications Different legal and tax provisions apply to the different forms of business organization. Sole proprietorship is not subject to legal requirements and its taxes are treated as the proprietor’s personal income. Partnerships are subject to legal requirements such as registration of official business name, if the business does not operate under partners’ names, and subjection to formal documents such as article of association, memorandum of association. Partnerships’ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Small-Business Idea Paper Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Small-Business Idea Paper Essay Example | Topics and Well Written Essays - 750 words. Retrieved from
(Small-Business Idea Paper Essay Example | Topics and Well Written Essays - 750 Words)
Small-Business Idea Paper Essay Example | Topics and Well Written Essays - 750 Words.
“Small-Business Idea Paper Essay Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Small-Business Idea Paper

Small Businesses changes. Though these are some of the advantages of starting a small business, it is highly important that the business man should create an idea of the business, seek better opportunity for his business by analysing factors such as technological advances, demographical changes, life style and tastes etc. This paper found that the contemporary business contexts are extremely complex and therefore a business man who is setting up a small business needs to have many personal and professional skills and abilities such as creative thinker, leader and...
13 Pages(3250 words)Essay

Small-Business Idea Paper

...? Small-Business Idea Paper Table of Contents Overview 3 Advantages and Disadvantages of Four Different Forms of Business Organizations 3 Sole Proprietorship 3 Partnership 4 C-Corporation 5 S-Corporation 5 Financial Statements Associated with the Forms 6 Consequences Associated With the Forms 7 Tax Implications 7 Legal Implications 8 Accounting Implications 8 Description of the Business 9 Rationale for the Selection of the Business Form 9 References 10 Overview The paper will emphasize on the assessment of the advantages and the disadvantages in relation to various forms of businesses so as to identify the appropriate business form to be established with the assistance of government funds. With this concern, the report shall take... into...
5 Pages(1250 words)Assignment

Entrepreneur Interview Paper (small business)

...? Interview Report School Interview report: The purpose of this assignment is to examine in more depth the risks, rewards, challenges andopportunities of operating a small business. This paper summarizes the interview with John Meredith, and provides insights into the factors controlling the success of small businesses. Meredith used to work as a firefighter in Richmond, Indiana before he started the Saver Systems. Originally, when he was working as a firefighter, so he frequently happened to sweep the chimneys. When he did that, he noticed that there were a lot of problems that where inherent in most chimneys which included but were not limited to the...
4 Pages(1000 words)Essay

Small business

...streets of Canberra, additional $ 200,000finances will be sought to launch subsequent outlets from other small times; that is, from the third year of operation. Eighty percent of financing of the expansion of the business will primarily come from the shareholders, while 20% will be borrowed from banks. The business aims at generating sales of up to $500,000 by the end of the third year, and to generate up to $300,000 gross margin by the end of the first fiscal year. The Business Business details Products/services: The business will deal with Fast foods and beverages such as coffee and soft drinks. The anticipated demand in 5 years to...
4 Pages(1000 words)Assignment

Small Business Plan Research Paper

...transform ideas into marketable products * Grant for Research and Development - South East England Offers grants to help businesses carry out research and development that will lead to technologically innovative products or processes * Market Visit Support Helps companies which are new to exporting to reach new markets * Environmental Action Fund (EAF) Helps schemes which work towards the government's sustainable development objectives * Charities Main Grants Programme Provides a grant to charities to fund large scale projects * SITA Trust - Small Grants Scheme Provides funding to support projects that benefit the community and the...
13 Pages(3250 words)Research Paper

Small business

...EXECUTIVE SUMMARY ABS & ASSOCIATES is a full-service consulting and accounting business born to provide high satisfaction by rendering excellent services, standard accounting, financial planning and management consulting services, and creating an enjoyable atmosphere at a very moderate and affordable price. In ABS & Associates, we will maintain a friendly, fair, creative and innovative work environment, which respects diversity and new ideas. This is the philosophy we intend to use, to build the ABS & Associates brand within the shortest time possible and make it a leading brand in the UK. Our Mission: To give our clients profession advice base on the nature of their businesses and...
10 Pages(2500 words)Essay

Small business

...outlets and sell their nutritious foods in at least ten festivals in the UK consistently and further increase this number by two festivals annually. This will be made easier by the increase in number of festivals held in the UK. Participation will definitely lead to a higher number of customers and subsequent success of the business. This is also the only way that the business will gain the prominence and fame it intends to achieve. The team also intends to carry out both verbal interviews and distributed questionnaires to capture the opinions of the festival goers and get their preferences where food is concerned. There is also a plan to give samples in small festivals so as to attract...
4 Pages(1000 words)Essay

Small Business

...Small Business Affiliation: Determine how the federal government encourages small businesses The US General Service Administration (GSA) is the one that deals with the needs and requirements of small businesses and ensures it encourages them. It does this through the use of several strategies including training of issues like partnerships, setting goals for the business and even how to win contracts, allowing small businesses to sell to them their products, counseling on issues like marketing strategies, seeking procurement opportunities, dispute resolution and even how to effectively...
2 Pages(500 words)Essay

Business idea

...1. Executive Summary The enterprise proposed in this report is that of a lunch service primarily intended for elementary schools, and possibly for high schools and similar institutions. The cafeteria and canteen business is showing lackluster performance in the Australian market, primarily because the product available through the existing services are expensive, generic and thereby unappealing for many end-users, nutritionally deficient, and in small portions considered insufficient by the customers. The proposed enterprise, on the other hand, will be receiving orders by an online page that links to the company’s e-commerce service. Parents are the primary customers since they shall be giving the...
12 Pages(3000 words)Essay

Business Idea

...BUSINESS IDEA al Affiliation) Selling Umbrellas to It rains frequently in London and specifically in P.S. In the case that a student is in school and it begins raining, he/she may be compelled to wait for the rain to reduce before moving from one place to another. In some cases, students have also faced challenges emerging due to rain water spoiling their books as they move from one department to another. This business focuses on selling of umbrellas to students, most international students from China and Russia, who are still not aware of the weather patterns in London. However, the services will be extended towards local students as well as lecturers and support staff, who may be in...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Small-Business Idea Paper for FREE!

Contact Us