LDR/531 3 Substantive Post
Lee, K. (2019). Business law (2nd ed.). Retrieved from https://www.myeducator.com/reader/web/760ai/
Learn: Topic 2: Business Organizations
Learn: Topic 3: Anti-Trust and Administrative Law 175 or more words each
Imagine that a friend tells you about their idea to start a sports therapy clinic which they plan to operate as a sole proprietorship. Respond to the following in a minimum of 175 words:
What benefits and risks would you advise your friend to be aware of?
I would tell my friend her/his idea of owning a sport therapy clinic will be a great idea starting off as a sole proprietorship. I would have made the same discussion myself, as a new business owner and I want to make sure I receive all my companies’ profit and make sure I understand the laws of Business. Eventually I would find a business partner, so it won’t be a lot of stress on myself running an entire business. The benefits of being a sole proprietorship have several advantages listed in our textbook Topic 2 “Small Business”. The great advantages of owning a business on your own are: 1) It’s easy to set up from a regulatory view 2)The cost of setting up is inexpensive 3) Easy to manage 4)Sole proprietorship is easy to terminate 4) Sole proprietor pays their own personal taxes and 5)it’s easy to transfer the business to someone else. The disadvantages of sole proprietorship are: 1) the person is responsible for all the contracts their involved in 2) If the person dies also the business dies and3) The capital the sole proprietor develops on his/her own or personal loans. I believe if anyone wants to start a business make sure your familiar with the laws. Before signing over your life into a contract that it may be hard for you to get out of, because you didn’t read over all the information. Respond?
A sole proprietorship is very easy to form. Setting it up requires very little paperwork or legal formalities. There are small startup costs involved. A sole proprietorship is also the least expensive to set up. The sole proprietor has complete power over the decision-making. They are the only one running the business, so all the decisions are made by that person. Sole proprietorships have the benefit of being subject to simpler taxation procedures; since it is not a separate entity, it is not taxable. It is as easy to cease all operations of a sole proprietorship as it was to set it up. Once the owner decides to stop running the business, they can easily do so.
The downside of being the only one who owns the business and enjoying its profits: you are also left to shoulder all its liabilities as well as its losses, if any. You are setting the business up with the intention of being the only one in control. Naturally, raising the capital you need is entirely up to you. This is why most sole proprietorships use their own money when
starting their business. The working capital of the business will be limited to the funds of the sole proprietor, and other funds that it can obtain through loans. Respond?
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