All categories

3 years ago

LO 2.1Identify the three primary classifications of businesses and explain the differences among the three.

Business

1 answer:

cricket20 [7]3 years ago

8 0

Three Primary Classifications of Businesses

We can classify businesses into following three types

1: Sole Proprietorship

2: Partnership

3: Corporation

Explanation of the Differences Among Them

Sole Proprietorship

It is also known as the sole ownership, it is run by one single person who works as the owner, this type does not fall under any legal entity title. It is most simplest form of business where one man, the owner bears all the profits, losses and responsibilities like local grocery corner shop etc.

Partnership

Here in partnership, there are two or more than two persons who open a businesses on profit and loss sharing basis which could be different as per their agreement. They all are equally responsible for the responsibilities and liabilities of that business.

Corporation

Corporation can defined as a legal entity which has nothing to do with owners, it is totally a separated being from its owners. It has its own liability, functions and rules. Corporation can sign any contract by its own even without interference from its owners. It has board of governors who basically run them independently. Walmart, Apple, Microsoft, Samsung, Nokia are the best examples of Corporation

Therefore, these are basic differences between these three primary types of businesses.

You might be interested in

Marilyn is age 66, if she receives a $15,000 taxable HSA distribution this year, what tax penalty, if any, will apply?

Arada [10]

Answer:

No penalty

Explanation:

The tax penalty is as follows

The HSA i.e. health saving account. It is opened so that the expenses related to the medical could be paid and the high health plan i.e. deductible (HDHP) would not covered here

In the case when rules are not followed so there is a penalty of 20%

Given that the amount taxable is $15,000

So here the penalty would be

= $15,000 × 20%

= $3,000

But since Marilyn age is 66 so there is no penalty as the penalty would be applied till the age of 65

5 0

3 years ago

Barbara is the manager at a sports arena that draws an average of 2,700 patrons per event. each ticket taker can process 125 eve

liberstina [14]

Average patrons per event = 2,700

Number of event goers a ticket taker can process = 125

Therefore number of ticket takers that need hiring = 2700 ÷ 125 = 21.6 = 22 ticket takers

6 0

3 years ago

Read 2 more answers

Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The com

anyanavicka [17]

Answer and Explanation:

a. The estimation of the contribution margin for each segment is shown below:

(in millions)

<u>Particulars Investor Advisor Services Services </u>

Income from

operations $1,681 $1,660

Add:

Depreciation $171 $154

Contribution

Margin $1,852 $1,814

2. Now the estimation of decline in operating income is

(in millions)

<u>Particulars Combined services Institutional Services </u>

Revenues $9,368 $4,771

Less:

Variable cost $5,702 $2,919

($2,919 + $2,783)

Contribution

margin $3,666 $1,852

Less:

Fixed cost -$325 -$171

Net income $3,341 $1,681

So according to the above calculations, the net operating income is declined by

= $3,341 - $1,681

= $1,660 million

The variable cost is come from

= Service revenues - income from operations - depreciation expense

7 0

3 years ago

Using examples explain what inputs eBay might be using in conducting its business . What are eBay outputs ?

lawyer [7]

Typically, a simple way to think of an input is anything that costs money. These can be both good and bad things. A simple example would be: if I had a machine that made candy: my inputs would be the energy required to run the machine, the person required to work the machine, and the ingredients I had to put in to make the candy. My outputs might be the candy the machine made and the happiness it gave to people who ate it. A negative output might be that it made people unhealthy.

As an internet company eBay does not have many of the typical inputs of doing business. For example, it does NOT have the cost of physical stores nor does it have the cost of depreciating inventory or any machines. For eBay, some examples of inputs would be it's people such as software engineers, marketing team, and executive staff. All overhead such as office space and the electricity to power its office space would be another example. Other examples could include the physical code behind eBay's software and money used to finance the company, and the data warehouses used to store everything.

Outputs can be thought of as the value a company creates. eBay's outputs are also somewhat atypical. eBay does not create a physical product that they then sell so that makes this a challenging question. You could argue that eBay's store or its platform is an output. All the data it produces as a company is an output and has a lot of value. Since eBay allows people across the world to open up their own store online, you could say it's creating the social good of jobs or entrepreneurship "global employment" through this action (eBay has supported this publicly as well so you could look up more about it on Google). Another output could be eBay stores created by sellers. eBay owns PayPal so if you can think of any related to PayPal you could include those as well and cite that eBay owns the company.

Hope that helps

8 0

3 years ago

Francisca and Garden Estate, Inc., enter into a contract for the use of a Victorian mansion and its grounds for a wedding and re

labwork [276]

Answer:

The answer is letter A.

Explanation:

They will be construed agains the party who drafted the contract. However, this rule only applies where one contracting party is in a superior bargaining position, usually either as a result of greater experience or the assistance of counsel.

3 0

3 years ago