Report on Arcadia's TOPMAN Essays

Formation of a partnership and the formation of a corporation have varying procedures and difficulties associated with them.

Downsides to being a public limited company is that there will be greater access to the company’s financial performance and actions which loses abut of the businesses privacy. The value of the company will be determined by financial markets through the trading of the company’s shares.

Morrie Schwartz wanted to be remembered as “A Teacher to the Last”. Even after his death, Morrie is teaching more students than ever, and his class is still flourishing. Tuesdays with Morrie by Mitch Albom details the relationship between college professor Morrie Schwartz and Mitch Albom in the last months of Morrie’s life. In the summer of 1994, Morrie develops Amyotrophic Lateral Sclerosis (ALS). When he learns of Morrie’s deteriorating health, Mitch seeks to see him again. Mitch and Morrie meet every Tuesday, discussing life’s lessons. These conversations not only brighten Morrie’s spirits, they change Mitch as a person. Tuesdays with Morrie has continued success due to Morrie’s empathetic attitude, the universal message of love,

The business is viewed as a separate legal entity. This means that even if a shareholder leaves the PLC or dies, the business can continue. Ability to raise large amount of capital.

You will need to carry out primary and secondary research, using the internet, interviews with business owners or employees, and observations of the business if they are local.

Ebert & Griffin (2005) outline three disadvantages to operate a corporation form of business. First, the corporation requires a high cost, or a lot of fund, to put

In setting up a limited company, it has the immediate benefit of being able to raise capital much more easily than a sole trader or partnership either by banks normally being more willing to lend or by selling shares (this is especially the case for PLCs being able to sell shares publicly)

Limited partnership is similar to General partnership; the main difference is that each partner is only liable for the percent or amount of money that they have invested into the business. These limited partners don’t have the same day to day responsibilities of a General partner. Some of the advantages may include; the limited partners get a portion of profits, they can leave and not have to worry about the dissolution of the business, and replacing a limited partner is very easy to handle. Some disadvantages may include; if the business is being sued or is having legal problems or facing debt, the responsibility if only with the general partners, the limited partners are not held liable (Allbusiness.com, 2011).

This report entails a detailed analysis of how three friends should set up their business. It starts by the definition of a General Partnership (unincorporated) and Limited Liability Company (incorporated). It furthermore goes into the disadvantages and advantages of each as well as the comparison between both. It concludes with a recommendation as to how the friends should set up their business.

One major disadvantage of the partnership is taxation, partners will pay the tax same way as a sole trader. Therefore they will pay the corporation tax in addition to this they will have to pay income tax. Another disadvantage is liability partners are still subject to unlimited liability same with a sole trader if the business can’t pay its

Disadvantages are the chances of the company plummeting due to poor management, and financial issues is very high (Ferrell, Hirt & Ferrell, 2014). Starting a small business take money to stay afloat and if mi managed for any reason, the company can lose profits and even the ability to stay open. Another disadvantage is lacking the knowledge and skills set is would take to elevate the business in an innovative era. More so, owners are usually charged higher interest rates on funds borrowed based upon their own personal credit determinates, opposed to support from investors who are able to get lower interest rates based upon their determinants.

Business start as private, receiving investments from persons and venture capitalists. When a business decides to open its shares to the public, this changes the business from “private” to “public”, going public completely changes how a business operates. “A business goes public when an investment bank approves the company for an initial public offering. The investment bank, or underwriter, becomes legally responsible for the shares and sells them to the public (Meilert, 2010).” When a business is public, anyone can buy a share of that business on a public stock exchange. Thus, the SEC entails public businesses to reveal financial information through a public quarterly and yearly SEC filing. The advantages of going public is the financial benefit in the form of raising capital, to grow or expand the business. Another advantage is the public awareness of the business, by making their product known to potential consumers. Debt-to-equity ratios generally progress after going public which surges the businesses ability to get financing. Disadvantages of going public include, the time and resources to create reports, file paperwork and work with bank underwriters on the financial plans, going public can be very expensive. Also, when your business goes public, there is more analysis and omission for the business. Publicly traded companies are obligated to file financial reports and disclosures with the SEC. These reports are accessible to the public, so your business is

Tax: taxation is also the one of the important factors as in PLC or proprietary limited Company the tax implication is the same as the other sole and partnership. which are pass through entities which means profit and losses are simply passed to the owners as it is while in corporations there is double taxtion as corporation has to pay a separate tax on its earning.

The above information shall be gathered by review of corporate literature, scholary texts and Internet resources. Andrew Carney of the School of Management and Business Enterprise, St

Certificate in Business Management Assignment 1 Date: 11th July 2013 Written For: Mike Tucker Written By: Mya Phue Thwe Student Declaration: “I, Mya Phue Thwe, certify that the work submitted in this assignment is my own”