200910 Chapter Notes - Chapter 1: A.D. Vision

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nellyxo20

6 Jun 2018

School

UWS

Department

University of Western Sydney

Course

200910

Professor

Neha

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   



FINANCINGENTEPRISES



Chapter1Formsofbusinessownership–choosingtherightfit

1.1Definesoletraderandexplainthe6advantagesand6

disadvantagesofthisownershipmodel

1.2Definepartnershipandexplainthe5advantagesand3

disadvantagesofownershipmodel



1.3Definecorporationandexplainthe4advantagesand6

disadvantagesofthisownershipmodel

1.4explaintheconceptofcorporategovernanceandidentifythe3

groupsresponsibleforensuringgoodgovernance



1.5identifypotentialadvantagesofpursuingmergersandacquistions

asagrowthstrategyalongwiththepotentialdifficultiesandrisks

1.6Definestrategicallianceandjointventureandexplainwhya

companywouldchoosetheseoptionsoveramergeroracquisition



1.1SoleTraderbusinessownedbyoneperson(farms,restaurants,online

shops,tradies,contractors,smallservice



businesses)operatedbycaterers,consultantsandfreelancewriters)

fundedbyowner

daytodaymanagementwithsomedelegationresponsibilities



 



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

Adv.(SSPFFP)



Dis.FDLRNF



1.SIMPLICITYEASYTO

ESTABLISH

lesspaperworkthanother

structures



lowcosts

needABNregisterforGSTif

annualgstturnover



1.FINANCIALLIABILITYunlimited

liabilitydamages(accidenton

premises,bankrupt)ordebtincurred

byabusinessaretheowners

personalresponsbility



2.SINGLELAYEROFTAXATION

allprofitflowsthroughtothe

ownereverythingtaxedon



2.DEMANDSONOWNERSlong

hours,stressofmakingmajor

decisions

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personalincome

lowcosttooperate



Generalpurposebus.Networks

suchasLinkedIn+specialised

(Biznick)



3.PRIVACY

noreportingrequirementsbesidesgov.reports+filingtaxreturns



4.FLEXIBILITYANDCONTROLaren’trequiredtogetapprovalfromyour

boss,boardofdirectors



3.LIMITEDMANAGERIALPERSPECTIVE

soletradersdon’thaveenoughskillsandexpertiseinaccounting,

marketing,ITtorunbusinsess

4.RESOURCELIMITATIONShavefewerfinancialresourcesandfewer

waystoget



TAXATIONhours,stressofmakingmajor



Costsharingpartnersshare

allprofitflowsthroughtotheownereverythingtaxedonpersonal

income

lowcosttooperate



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200910 Chapter Notes - Chapter 1: A.D. Vision

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