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Small Business Owner: Finance and Accounting Questions - Essay Example
This paper consists of questions on Small Business Owner.The business that is 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. The company has many clients throughout United Kingdom. …
Alert Alarms advocate superior services to clients and aim at client satisfaction at all costs. 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.