Chapter 2 The Business tax and financial Environments 2-1
2-1 Chapter 2 The Business, Tax, and Financial Environments
The business, Tax, and Financial Environments The Business environment The tax Environment The financial Environment 2-2
2-2 The Business, Tax, and Financial Environments The Business Environment The Tax Environment The Financial Environment
The Business Environment The u.s. has four basic forms of business organization Sole Proprietorships Partnerships general and limited) Corporations Limited liability companies 2-3
2-3 The Business Environment Sole Proprietorships Partnerships (general and limited) Corporations Limited liability companies The U.S. has four basic forms of business organization:
The Business Environment Sole Proprietorship .a business form for which there is one owner This single owner has unlimited liability for all debts of the firm Oldest form of business organization n Business income is accounted for on your personal income tax form 2-4
2-4 The Business Environment Oldest form of business organization. Business income is accounted for on your personal income tax form. Sole Proprietorship -- A business form for which there is one owner. This single owner has unlimited liability for all debts of the firm
Summary for Sole Proprietorship Advantages Disadvantages Simplicity Unlimited liabil Low setup cost Hard to raise Quick setup additional capital Single tax filing Transfer of on individual form ownership difficulties 2-5
2-5 Summary for Sole Proprietorship Advantages Simplicity Low setup cost Quick setup Single tax filing on individual form Disadvantages Unlimited liability Hard to raise additional capital Transfer of ownership difficulties