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uysha [10]
2 years ago
12

Explain how TWO factors have determined the form of ownership of the business

Business
1 answer:
Karolina [17]2 years ago
8 0

Answer:

The two factors that determine the form of ownership of a business are;

1. Start-up costs

2. Level of control desired

Explanation:

The form of ownership of a business defines the structure with which the business will be governed. There are different form of business ownership that exist, namely; sole proprietorship, partnerships and corporations. They all differ in different aspects as shown;

1. Sole proprietorship

A sole proprietorship as the name suggests is a business structure where there is only one owner. The owner is in charge of the business profits and liabilities. It is generally a simple business structure that needs a small company, where filing tax returns are very easy.

2. Partnerships

A partnership is a business structure where two or more parties come together to form a business. The parties are responsible for the profits depending on the amount contributed by each party. Each individual always pool their resources towards the successful completion of a given project therefor each party is liable for their own profits and risks.

3. Corporations

Corporation are similar in a way to partnerships since they involve two or more parties with the major difference being that a corporation is a separate legal entity. So the liability is always to the corporation itself and not to the parties that constitute the corporation.

Two factors that determine the form of ownership of the business are;

1. Start-up costs: if you intend to minimize the cost of starting up you business then a sole proprietorship is the best option due to its simplistic nature and very minimal start-up expenses.

2. Level of control desired: Depending on the level of control one would like to have in the business regarding decision making and the daily operations of the business. If one needs a larger level of control, the best option would be sole proprietorship, while minimal control would require a coorporation form of ownership.

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Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
Anastaziya [24]

Answer and Explanation:

The preparation of  the stockholder equity section is presented below:

Tandy Company

Balance Sheet (Partial)  

Stockholders Equity :  

Contributed Capital :  

Common stock (21,900 shares ×  $6) $131,400

Preferred stock (5,000 shares × $13) $65,000

Additional Paid in Capital - Common stock (21,900 shares ×  $20)  $438,000

Additional Paid in Capital - Preferred stock (5,000 shares × $17) $85,000

Total Contributed Capital $719,400

Add: Retained Earnings $41,600

Total Stockholders Equity $761,000

4 0
3 years ago
Given this project and the requirement that the number of resources working on a task cannot be less than the number assigned to
Marizza181 [45]

Answer: c. 5 days, 7 workers

Explanation: With the project requirements provided, and with the least of number of resources working on the task not less than the number of those assigned to the task.

The least amount of time for the project to complete would be approximately 5 days, and the resources needed to complete the task would be approximately 7 workers.

8 0
3 years ago
Samuel assists his clients in investing in the stock market. He not only acts as an agent by buying and selling corporate stocks
givi [52]

Answer:

Samuel plays the role of a securities broker.

Explanation:

A securities broker has the function of being the link between the investor and the global financial markets. The broker helps guide the client to make the best investment decisions in the market.

In addition to advising its clients, the securities broker is responsible for buying and selling the shares of its client. To be a securities broker, you must have higher studies in administration, economics, or finance, also have completed the preparation to work as a broker.

<em>I hope this information can help you.</em>

8 0
3 years ago
Research suggests that up to ___________ of manufacturing firms are using some form of lean in their business.
lisov135 [29]
<span>Up to ninety percent of businesses are using some type of lean processing. This allows them to maintain productivity with minimal staff and overhead. This has become more important as labor costs continue to rise.</span>
7 0
3 years ago
External factors in a SWOT analysis include the strengths and weaknesses of an organization.
Katarina [22]

Answer:

False

Explanation:

External factors in a SWOT analysis does not include the strengths and weaknesses of an organization.  The full meaning of SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The Strengths and weaknesses are internal factors to an organization as they have management control over it and can be modify as well.

4 0
2 years ago
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