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Small Business Owner: Finance and Accounting Essay
Finance & Accounting
Pages 4 (1004 words)
Running Head: Small Business Owner Small Business Owner Customer Inserts His/her Name University Name Question 1 The business I have chosen is a small UK based company that provides security alarm systems for businesses and homes. It is named Alert Alarms and it is based in Lincoln.
Alert Alarms advocate superior services to clients and aim at client satisfaction at all costs. Question 2 The legal ownership of Alert Alarms is sole proprietorship. The company is owned by a single owner and all the investment is the done by single owner. There also no protection of personal assets in sole proprietorship (Resource Nation, 2011) and this is the case with Alert Alarms. All these characteristics make the business a sole proprietorship. Sole proprietorship also allows businesses to save on taxes to a certain extent but the debt of the business is secured. People who have lent money to the business can claim their money even if they have to sell the personal assets of the business owner. Alert Alarms is a small business and its debt is not limited. This makes it a sole proprietorship. Question 3 There are many alternatives to sole proprietorship. Alert Alarms could have registered itself as a partnership. Partnership is a legal ownership structure in which two or more people contribute to the initial investment of the business. All the partners are a part of the business and they all have unlimited liability of their business that is their personal assets are not protected against the debt of the company. Corporation is another type of legal entity where shares are sold to general public. ...
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