Danquis DeArmond Management 325 Saint Leo University 5/16/2016 First, we have Tax-Favored. Being Tax-Favored is favorable in tax terms for firms or companies to raise money through debt instead of going through the stock market. A company raises money through the stock market, and when that happens it is submitted to get taxed two times. This means the company’s earnings are taxed as part of the corporate income tax, after this is done normally the profits that are leftover get paid out to shareholders as dividends. The dividends are taxed as well.
Liability is the weaknesses of the proprietorship .The business owner will be held directly responsible for any losses, debts, or violations coming from the business. For example, if an enterprise has to repay its debt, it will be satisfied from the owner's own personal fund. This is drastically different from corporations, wherein the members enjoy limited liability (i.e., they cannot be held liable for losses or violations). Another weakness of the proprietorship is taxes. Although the sole proprietorship enterprise has many tax advantages, the main drawback is that the owner must pay individual income tax.
By understanding the business environment the organization can identify its strength, weaknesses, opportunities and threats. Organizations are categorized into two types and those two are private sector and public sector. Organizations in the private sector are sole trader ship, partnership joint ventures, clubs and societies, limited companies, co-operatives and the public sector consist of government companies, government departments and government corporations. Organizations in private sector are owned by the private individuals for profit motive whereas organizations in public sectors are mostly owned by the government. Stakeholders are people with common interest in business and the stakeholders of FCUK which has sorted into two groups internal and external stakeholders and stakeholders in both groups has their responsibilities towards FCUK.
From Milton Friedman’s view, maximizing profit is the only focus of any business corporation, so long as it does not violate the state’s laws and the fundamental rules of society. Most firms are disposed to agree the above statement, thinking that business as a whole should not perform social responsibility at a cost of shareholders ('Shareholder value or social responsibility? ', 2007). However, the case of ‘Brent Spar’ revealed the failure of corporate social responsibilities, showed that complying with the legislative requirements is insufficient from the view of the
Understand organisational structures 1.1 Explain the differences between the private sector, public sector and voluntary sector In the business world there is three main sectors that separate different organisations they are: The private or commercial sector, the public sector and Voluntary or not-for-profit sector. The Public sector aims for goals other than profit but are not operated by the authorities on the other hand the Private and Commercial sectors main aim is to make profit and is the crucial difference between an organisation flourishing and an organisation being liquidated. Unlike the Private and Commercial sector that are funded by either an owner or shareholders the Public sector is funded entirely by the government. The Private sector plays a vital role in urban and economic development as it is a large contributor to national income and is the sector that employs the most people. The private sector provides 90% of employment in the developing world and provides 83.1% of the United Kingdom’s jobs.
This means that the limited partners have no management authority, and (unless they obligate themselves by a separate contract such as a guaranty) are not liable for the debts of the partnership. The limited partnership provides the limited partners a return on their investment (similar to a dividend), the nature and extent of which is usually defined in the partnership agreement. General Partners thus bear more economic risk than do limited partners, and in cases of financial loss, the GPs will be the ones which are personally liable.Limited partners are subject to the same alter-ego piercing theories as corporate shareholders. However, it is more difficult to pierce the limited partnership veil because limited partnerships do not have many formalities to maintain. So long as the partnership and the members do not co-mingle funds, it would be difficult to pierce the veil.
One possibility is a carbon tax, which has been gaining popularity and has become one of the frontrunning solutions among legislation. The basic premise of a carbon tax is a law where the government taxes companies, manufactures, and cooperations for every set unit of carbon emissions they produce. One of the advantages of implying a tax is a tax forces companies to reduce their emissions by charging them for the emissions they produce. Currently in, the US, there are virtually no consequences for emissions. Therefore, a company can pollute as much as they want and receive no economic deduction, just collect the profits.
Capitalism and free enterprise are often seen as synonymous. In truth, they are closely related yet distinct terms with overlapping features. It is possible to have a capitalist economy without complete free enterprise, and possible to have a free market without capitalism. Any economy is capitalist as long as the factors of production are controlled by private individuals. However, a capitalist system can still be regulated by government laws and the profits of capitalist endeavors can still be taxed heavily.
The examination of this notion will be through seeing what impact the United States work in other countries has within the United States; beneficial or detrimental outcomes. However, with non-profits having a source of income, should they not have to pay taxes? Even more so, if a company is receiving a tax break in the United States but is doing work outside of the county, can it be deemed unnecessary to allow them to receive tax exemptions? It would seem plausible that a company that is based in the United States and promotes the United States economy would receive tax benefits, but not ones that work outside out the country. Then through analyzing the impacts that not for profit businesses have with the work they do, the overall effects can be seen in global and local markets.
Nick Fury, the entrepreneur of this business, should organize his company as a proprietorship rather than a partnership or a corporation. He cannot become a partnership because he is the sole owner, and will receive all of the profits. After that was determined, there were only two options left. If he were to become a corporation, because a corporation is a separate entity from the entrepreneur, then he would have to pay double the taxes than he already has done. Now if he were a proprietorship, the business and the entrepreneur would be considered the same.