ADM477 Best Form of Business Ownership and Sole Proprietorship
Order Number |
678899000098 |
Type of Project |
ESSAY |
Writer Level |
PHD VERIFIED |
Format |
APA |
Academic Sources |
10 |
Page Count |
3-12 PAGES |
ADM477 Best Form of Business Ownership and Sole Proprietorship
If you have ever thought of starting your own business, you know how important it is to select the most appropriate business type to meet your needs. The sole proprietorship is by far the most popular type of business organization, because it is inexpensive, easy to form, and does not require formal incorporation. A sole proprietorship is still subject to various types of regulations, however. For example, you may have to register your trade name with the state, secure local business licenses, and collect both local and state sales taxes.
The idea of being one’s own boss is what makes the sole proprietorship so appealing to entrepreneurs. The major downside to owning a sole proprietorship is that you are personally exposed to unlimited personal liability. The sole proprietorship is not a legal entity, so it cannot be sued. So you could lose not only your business, but all of your personal assets, too, to satisfy a court judgment against your business.
One viable way to protect your personal assets is to purchase comprehensive business liability insurance. Insurance plans can be customized to fit your business needs. Insurance companies offer all kinds of sole proprietorship insurance policies. General liability policies cover everything from personal injury and property damage, to worker compensation, and cyber breach insurance.
Upon successful completion of the course material, you will be able to:
Compare the advantages and disadvantages of operating a business as a sole proprietorship.
Explain the advantages and disadvantages of operating a business as a limited liability company.
Private Companies and Cost of Capital Paper
Submit ONE-page argument using Toulmin’s Model to make your best argument for or against the question: Are small private companies overvalued? Post in reply rather than attachment.
Background: The Build-up method for estimating the cost of capital in the valuation of a privately held company, relies mostly on information from active markets for publicly traded stocks. Does this information cause an underestimation of the capitalization or discount rate? You can reference the paper in files, Week 13, Company Specific Risk and Small Company Valuation.
For or against the subject, “Are tiny private enterprises overvalued?” submit a one-page argument based on Toulmin’s Model. Instead of including an attachment, make a reply to this message.
Background: Based on information from publicly traded stock markets, the Build-up approach is used to estimate a privately owned company’s cost of capital. Do we underestimate the capitalization or discount rate because of this information? Please go to Week 13, Company Specific Risk and Small Company Valuation in your files for further information.
ADM477 Best Form of Business Ownership and Sole Proprietorship