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shtirl [24]
3 years ago
11

Since graduating from college five years ago, you have worked for a national chain of men's clothing stores. You have held sever

al positions within the company and are currently manager of a local branch store.
Over the past three years, you have observed a pattern in the purchases of men's suits. You establish that the majority of men's suit purchases are black, brown, blue, gray, and olive. You also noticed that French cuff shirts are now fashionable, but few stores carry a wide color selection. Because you have always wanted to be in business for yourself, you decide to open a shop that will sell suits that are black, brown, blue, gray, and olive and to carry a wide array of colors of French cuff shirts. Your store will also sell fashionable ties and cuff links. You have decided that your store will brand itself for focusing on men's fashion; therefore, the name for your store will be "The Style Shop." You have discussed your plan with a number of people in the industry, and they believe your idea is a viable one and have encouraged you to pursue your dream of becoming an entrepreneur.

A new upscale outdoor shopping mall is opening nearby, and you have decided that now is the time to take the plunge and go into business for yourself. After developing a comprehensive business plan that includes marketing strategies and financial projections, you decide to open The Style Shop in the new mall.

One of the things you must decide in the process of transforming your idea into reality is the form of ownership for your new business. Should it be organized as a sole proprietorship, a partnership, or a corporation? What advantages or disadvantages are there to each choice? What do you think of the proposed name for the business, The Style Shop? use the chart below to organize your thoughts.

Business Entity Advantages Dis-Advantages

Sole Proprietorship
Partnership
Corporation
Business
1 answer:
anzhelika [568]3 years ago
3 0

Explanation:

Sole Propietorship:

Individual ownership is a form of business that is facilitated, where there are not so many rules and formalities and taxes are paid on the company's income. In this business model, there is a single owner of the enterprise who manages the business and is the only one responsible for the company's debts and profits.

The advantages are: low opening cost, low taxes, greater control, easier selling

The disadvantages are: greater liability for debts, less attraction for investors

Partnership:

A partnership is a business model where two or more people come together to open a new business together. Which means sharing responsibilities arising from the business.

The advantages are: less formality than a limited partnership, more simplified accounting, shared responsibilities, easier opening that can be agreed in writing.

The disadvantages are: conflicts over business disagreements, personal conflicts can hinder business, lack of stability, debt sharing

Corporation:

A company is a legal entity, which separates itself from its owners and acquires its own legal responsibility.

The advantages are: tax benefits, less personal responsibility, greater investment attraction, greater capital generation.

The disadvantages are: greater formalization, greater need for capital, greater inspection, greater payment of taxes, greater social and environmental responsibility.

<u><em>What do you think of the proposed name for the business, The Style Shop?</em></u>

The proposed name for the business should be a more specific name, as the name is very generic, there is no specificity that guarantees greater clarity about what the business offers and for whom. An ideal name should be more focused on your potential audience and easier to identify.

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3 0
3 years ago
When each partner contributes capital and owns a specified right to a percentage of the proceeds from the alliance, the collabor
JulijaS [17]

Answer:

The correct answer is "equity ownership"

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When each partner contributes capital and owns a specified right to a percentage of the proceeds from the alliance, the collaborative relationship is referred to as equity ownership.

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7 0
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A company had the following cash flows for the year:
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Answer:

$35,000 (inflow)

Explanation:

Net investing cash flows is computed as follows;

Inflow:

Issued common stock $75,000

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Total $115,000

Less: outflow

Purchased land $60,000

Paid dividends 20,000

Total outflow $80,000

——————

Net investing cash flows $35,000

*positive cash flows (inflow is greater than outflow) will increase the amount cash of the company

*proceeds from the bank classified as financing activity

*paid employees and sold services to customers are fall under operating activities

3 0
3 years ago
Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra, in whose state Omni is not
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Answer:

b. enforce the policy or recover the amount of the premiums paid.

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This means Petra can either enforce the law as a top person or recover the amount of premiums paid.

7 0
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The total cost analysis demonstrates how other costs besides the unit cost can affect purchase decisions. True False
zvonat [6]

Answer:

That statement is true

Explanation:

In order to conduct a total cost analysis, a company need to calculate every single relevant cost that occurs within  an operation  or project from start to finish. From this, the company usually can find out about hidden costs that might occurs outside the initial plan.

The decision makers can use this options to make their decision in the future. If the total hidden cost is larger than ideal, they can either implement a new budgeting plan or implement policies that minimize the hidden cost.

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