Pros And Cons Of Sole Proprietorship
A sole proprietorship has many befits to them. Owners have the sole control of everything that happens to their business and is responsible for making any and all decisions regrading it. Many businesses start as proprietorship before becoming other business forms. Any income that is made by the business is the owners income. Sole proprietorship also experience very little government control and few restriction and are taxed differently then many businesses. One of the best things about opening a sole proprietorship business though is the speed and ease at which the business can be started (“The Pros and Cons of a Sole Proprietorship”, n.d.).
There are of course problems with having a sole proprietorship business. Owners are 100% responsible
…show more content…
This is even true with a one-person corporation. It’s a popular option with doctors practices, lawyers and trades owners (Ward, n.d.). A corporation is different from some companies because it can own property, be sued or sue, and enter into a contract (Althouse, Allan, Hartt, 2017). Unlike sole proprietorships and partnerships, corporations are taxed separately, having to file their own tax returns. Another good thing about corporations, is that they don’t dissolve when an owner dies, they live on with an unlimited life span (Ward, …show more content…
All the services that need to be provided are being provided by the owners company and has no need to set up a joint venture
• Franchise
Franchises are a very important part of the business world. When traveling from city to city we look for places like Tim Hortons or Boston Pizza. These are businesses that we are familiar with and trust the services that we receive. People thinking of opening a franchise joint has to pay a franchise cost to the owners. But this gives them the chance to run a business that is already familiar to people, instead of starting a business from scratch. There is often already training programs and financial assistance available to these starting franchises.
Opening a franchise business can be very expensive. On top of the building, supplies and employees, they must pay a franchising cost to the owners. This can be a relatively small amount, but it can also be quite substantial. People opening these franchises also can find that they have very little control and are restricted in their operating. This is because the owners of the franchise company have developed a operating system that they cannot
Finale-Just Desserts Case Study
1226 Words | 5 PagesThis could be a major reason why the company has received great results after they switched to a mobile
Thomas Keller Case Study
2745 Words | 11 PagesCompany Overview I have selected the Thomas Keller Restaurant Group as the company that I will be using in the opening of a new restaurant. The company is a private corporation owned and operated by Chef Thomas Keller (Company overview of Thomas Keller restaurant group). I chose this company because the Owner/Chef is a world class Chef who owns multiple 3 Michelin star restaurants, The French Laundry in Napa County and Pre Se in New York, New York (Le chef américain thomas keller reçoit la légion d’honneur, 2011). Thomas Keller “is the only American chef to have obtained simultaneously three Michelin stars” (Le chef américain thomas keller reçoit la légion d’honneur, 2011), he currently holds seven Michelin stars, “3 Stars, The French Laundry,
Chick-Fil-A Franchise Case Study
225 Words | 1 PagesThe first time I have heard of the Chick-fil-A Franchise Opportunity was in the discussion about good opportunities of starting business in the Facebook community. My interest in different business opportunities to bring a change to my life prompted me to check what Chick-fil-A Franchise could offer to a motivated individual committed to developing one’s own business and making it successful entrepreneurships experience. I have studied a list of the top-ranking global franchises, their profiles and the industries they operate in. The American Franchisee Association was also a helpful resource for learning more about franchise opportunities. Out of the one hundred companies and corporations listed, eight represent franchises that are
What Are The Political Factors Affecting Subway
1546 Words | 7 PagesExpansion into developing nations with different social and cultural parameters would require altering the menus and catering to the specific customer needs. Economic factors The low franchising cost comparing to the competitors is an advantage for Subway. However the cost of ingredients and supplies used in the preparation of food is higher than that of the competition due to the need for fresh ingredients. Customers have a perceived value which is higher than that of the product offerings of alternate fast food chains.
Buffalo Wild Wings: The Management Structure Of A Restaurant
1556 Words | 7 PagesTheir franchisees execute a separate franchise agreement for each restaurant opened, typically providing for a 20-year initial term, with an opportunity to enter into a renewal franchise agreement subject to certain conditions. The initial franchise fee for a single restaurant is $40,000. Franchisees typically pay a royalty fee of 5.0% of their restaurant sales. BWW also charge franchisees an advertising fee in the amount of 3.5% of their restaurant sales, of which 3.0% was contributed to BWW National Advertising Fund in 2013 and the remaining 0.5% was spent directly by the franchisee or through marketing co-ops. Buffalo Wild Wings current form of franchise agreement allows them to increase the royalty fee and the required contribution to the Advertising Fund by 0.5% once every three years.
Chick Fil A Executive Summary
1506 Words | 7 PagesIntroduction Company Summary The franchisor is Chick-fil-A, Inc. Franchisees (referred to as Operators) will operate a franchised Chick-fil-A Restaurant business which is a quick-service restaurant specializing in a boneless breast of chicken sandwich. Chick-fil-A Restaurants are established in free-standing locations as well as in non-free-standing locations, including mall and in-line units, non-traditional locations, and locations which are drive through only. Mission Statement Chick-fil-A doesn’t have an official mission but express it through its purpose: “To glorify God by being a faithful steward of all that is entrusted to us.
Pantry Case Study Summary
3865 Words | 16 PagesTheir prices on petroleum allow them to be a substantial substitute in the industry because of the low switching costs. Consumers are also able to go to other quick service restaurants that either stand alone or operate in another convenient store. Bargaining Power of Suppliers The bargaining power of suppliers is high because the industry is heavily controlled and the products that are needed are imperative to the company’s operations.
Informative Speech: An Attention Getter For Fast Food
733 Words | 3 Pages1. Supporting point 1: Nowadays we can see these fast food restaurants in almost every shopping mall and there is at least one of these franchised restaurants in each area of the city and still increasing in number because of the high demand. a. Sub-supporting point 1: Although there are lots of choices of food inside a mall, but people often choose fast food as it is affordable and yet it is tasty and filling at the same time. b. Sub-supporting point 2: For example, in the Kuala Lumpur International Airport, there are a lot options of food to choose but the two franchised McDonalds are still always
Apple Market Structure
1323 Words | 6 Pagesis known as Corporation. Apple Inc. is one of the leading organizations in technology all over the world, the company had to convert its form of business organization to the corporate form so as to enable them raise the capital needed for expansion and development of new products. A corporation is legal and separate from the owner; they operate on set bylaws and procedures which regulates their operations and decision making process. These bylaws guide the stakeholders in electing the board of directors who then pick the managers. The managers are expected to run the organization with the interests of the stakeholders at heart.
Franchising Versus Company-Run Operations: Modal Choice In The Global Hotel Sector
1648 Words | 7 PagesThe authors study a restaurant for this purpose. The restaurants have an inherent advantage that a licensed and franchisee restaurant might share the same menu ideas, outlook strategies, and production pedagogy which necessarily makes them more comparable while the management forms, observing systems, hiring methodologies etc make the two different enough to study and identify the underlying causal relationship (if any). The authors in the end then comment on the vital points of differences between franchising and licensing. These differences are microscopically studied under both operational as well as business thought process aspect. The authors comment that franchising might lead to a higher customer satisfaction level irrespective of the metric and the reason being that franchisor usually has better control of the day to day operations in a franchisee.
The Advantages And Disadvantages Of Ikea's International Strategy
1026 Words | 5 PagesDue to different country’s policy, different business model are required for IKEA to run their business. For examples, IKEA will need to implement joint ventures as their business model to become successful in the Indian and China marketplace. Since the government for these countries requires that local business operations own about 51% control by Indian nationals, IKEA 's should find the right partner for its own. There are some advantages and disadvantages for IKEA to implement Joint venture as their business model. For the advantages are provide an opportunity to IKEA to access to the new markets and distribution networks, increased capacity to expand their business in foreign market, IKEA can share the risks and costs together with their partners and it will help IKEA to access to local resources, including specialised staff, technology and finance aspect.
Liability Risks In A Small Business
983 Words | 4 PagesI.e. if I’m accused of violating a contract or someone from the business entity does whether written or oral, that particular dispute might or eventually lead to a lawsuit. And if such Problems arise, they are known as "contract" claims, because the problem derived from a contractual agreement. Another serious risk and Liability faced by single proprietor is that, when someone in around the business gets injured by some act that are not actually contract related, either financially or personally. For instance, if someone got injured by one of employees through negligent; definitely, my business will be held liable.
Literature Review On Startup
984 Words | 4 PagesLiterature Review: The purpose of this chapter is to present a review of literature relating to start-up business. The following are the literature review by different authors and different research scholars. Weiss: made a study in US and concluded that small businesses are generally less efficient when compared to large administrative companies and concluded that on an average, about half of total shipments in the industries covered are from suboptimal plants.
Cacao Show Case Study
865 Words | 4 PagesMy understanding of business model is a description what a company does to make values for customers and to get money from customers. 2. Analyze the business model of Cacao Show: • Complete an Osterwalder (www.businessmodelgeneration.com) business model canvas of Cacao Show • Complete an Ash Maurya (www.leanstack.com) business model canvas • Describe the concept The concept of Cacao Show is to deliver high-quality products with affordable price. They have created a new position in the market.
More about Pros And Cons Of Sole Proprietorship
Finale-Just Desserts Case Study
1226 Words | 5 PagesThomas Keller Case Study
2745 Words | 11 PagesChick-Fil-A Franchise Case Study
225 Words | 1 PagesWhat Are The Political Factors Affecting Subway
1546 Words | 7 PagesBuffalo Wild Wings: The Management Structure Of A Restaurant
1556 Words | 7 PagesChick Fil A Executive Summary
1506 Words | 7 PagesPantry Case Study Summary
3865 Words | 16 PagesInformative Speech: An Attention Getter For Fast Food
733 Words | 3 PagesApple Market Structure
1323 Words | 6 PagesMy Corporate Identity
489 Words | 2 PagesFranchising Versus Company-Run Operations: Modal Choice In The Global Hotel Sector
1648 Words | 7 PagesThe Advantages And Disadvantages Of Ikea's International Strategy
1026 Words | 5 PagesLiability Risks In A Small Business
983 Words | 4 PagesLiterature Review On Startup
984 Words | 4 PagesCacao Show Case Study
865 Words | 4 Pages