Question: Explain the basic differences between a sole trader (or single proprietorship), a partnership and a company. Discuss the factors that need to be considered in

Explain the basic differences between a sole trader (or single proprietorship), a partnership and a company. Discuss the factors that need to be considered in selecting an appropriate structure for Cynthia’s beauty services business.

Step by Step Solution

★★★★★

3.41 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The three basic business structures are Sole traders are where individuals conduct business in their own capacity They would be contributing their own capital or equity to the business and would be bo... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

Analyse why the cash received from the sale of a good is income yet the cash contributed by the owner is not income.

During the year ended 30 June 2016, Skilled Services, a provider of temporary secretary personnel, had collected receipts from clients for a total value of $250 000. Wages of $136 000 had been paid...

A friend who has established a new dance studio, Hip and Hop, has asked you to give some advice as to the contents of financial statements. Transactions of Hip Hop include: (a) contribution of cash...

Agree or Disagree? Discussion: "10 Ways to Create Shareholder Value" by Alfred Rappaport. What are some shareholder maximization strategies that you found particularly appealing? Also, what are some...

Solve all When threats are used by someone who does not have a special legal relationship of trust or a confidentla relationship to another person to force someone to enter into a contract, the...

Facts Charlene and her boyfriend, Charlie jointly own several acres of land that is adjacent to their home, of which they also own jointly. Charlie owns a sporting goods store and operates it as a...

Side Agreements Business Law Individual Assignment I. Introduction The Commercial Companies Law of the United Arab Emirates (Federal Law No. 8 of 1984, as amended) provides for seven types of...

Income Statement of an interior design firm, Grand Designs, that makes money by selling hours (fees) and by selling furniture or other items (Sale of Goods). 1) Using the formula for Profit Margin,...

BUSINESS LAW - BLAW150 - Winter 2017 Instructor: Frank Fischer ASSIGNMENT #2 - 1st Alternative DUE DATE: Friday April 21, 2017 11:59 pm I have decided to create two (2) alternative assignments for...

Building and Construction BSBSMB401 Establish legal and risk management requirements of small business Learner Materials and Assessment Tasks Table of Contents About BSBSMB401 Establish legal and...

Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data: Determine which is...

Write the pdf f Y (y; ) = e y , y > 0, in exponential form and deduce a sufficient statistic for . Assume that the data consist of a random sample of size n.

What is multi-stage sampling and why is it used?

6. At the end of the calendar year, a firm has total financial assets amounting to $3.78 billion, while its total liabilities are $3.63 billion. What is this firm's net financial wealth? If the firm...

A researcher has tested the hypotheses Ho: M = 69 versus H1: /

Homework 8 Hypothesis Testing 1. The following table shows the survival counts of the various classes on the Tltanic. Survived Not Total Survived First Class Passenger 1 23 Second Class 118 66 8...

eBook Project A requires an initial outlay at t = 0 of $ 4 , 0 0 0 , and its cash flows are the same in Years 1 through 1 0 . Its IRR is 1 5 % , and its WACC is 1 2 % . What is the project's MIRR? Do...