COB 218 Chapter Notes - Chapter 11: Uniform Commercial Code, Tax Deduction, Double Taxation
Document Summary
Entrepreneur: one who initiates and assumes the financial risks of a new enterprise and undertakes. One of the first decisions is which form of business organization will be most appropriate for the (1) ease of creation (2) the liability of the owners (3) tax considerations (4) the ability to raise capital. Chapter 11 to provide or control its management. new endeavor. There are three major forms that entrepreneurs use to structure their business enterprises. Sole proprietorship: the simplest form of business, in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business. The proprietor owns the entire business and has a right to receive all of the profits (because. It is often easier and less costly to start a sole proprietorship than to start any other kind of. Do not need to file any documents with the government.
