Finance/Accounting - Essay Example

Only on StudentShare

Extract of sample
Finance/Accounting

c. In terms of continuity of business, the corporation is preferable because the investors are not part of the management, and the directors that represent them can be replaced. The death of the officers or the top or higher management people will not affect the continuity of the business. The death of the sole proprietor, on the other hand, ends the business, and the death of one of the partners can dissolve the business or cause a reorganisation.
d. Transferability of ownership. The stockholder can sell his shares, while the sole proprietor cannot transfer ownership. The partner in a partnership also cannot transfer his ownership of part of the business, unless a reorganisation is contemplated.
e. Management control and regulations. The sole proprietor enjoys full management and control of his business, while the partner in a partnership has to share the management of the enterprise with the another partner or other partners. The stockholder relinquishes control his stock ownership to a group of professional managers who may not always act in the stockholders’ best interests. The sole proprietor is practically autonomous and subject only to the regulations imposed by law and the state. The corporation formulates and imposes its own rules and regulations to be followed by all officers and employees which are necessary for the efficient functioning of the enterprise.
f. Ability to raise capital. The corporation can raise capital more easily than the other two forms because it can conduct a public offering, while the sole proprietor has to rely on his own personal reputation and creditworthiness, and the partnership has to depend on the creditworthiness of either or both or all of the partners.
g. Income taxes. Both the sole proprietor and the partners are taxed only once and their tax rates are lower than the corporate income tax rates. The corporation is also taxed twice - as a corporate entity and when the ...Show more

Summary

Using the following criteria, one of these forms are the preferred ones for the reasons specified:
b. In terms of liability of the owners, the corporate form, from the…
Author : donnie17
Finance/Accounting essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance/Accounting"
with a personal 20% discount.
Grab the best paper

Related Essays

Project Finance, Accounting and Control
The layout of a distinctive annual budget plan comprises a comprehensive line-by-line and department-by-department estimations of the income and expenses which are most likely to arise during organisational operations. Notably, the variables causing income and/or expenses are strongly influenced by the accuracy and the efficacy in executing the budgeting process (Siciliano, 2003).
8 pages (2000 words) Essay
Finance accounting
Thus the current and the non-current assets and liabilities of the company has been assessed so as to investigate on the valuation method thus adopted by the company. At time the valuation of the assets of the company gets inflated due to the method of valuation thus adopted by the company.
6 pages (1500 words) Essay
Finance Accounting
In recent years there has been a major increase in the international importance of this concept. This has come about with its adoption by the European Community in the Fourth Directive on company law and its implementation in all Community countries. However, this concept has never been defined in UK legislation, and a variety of meanings can be attributed to it.
4 pages (1000 words) Essay
Corporate finance (Accounting)
Gosling and Hopkins (G&H) PLC, the producer of food products in UK market, have now decided to expand its business operations. For this, the company requires adequate source of funds, the quantum of which should be relevantly decided by the Finance Department of the company in detail.
8 pages (2000 words) Essay
Finance: accounting
Different accounting policies can provide different estimates of earnings therefore accounting profit is not only an arbitrary figure but also subjective in nature. Accounting income can also be misleading because of the fact that it can distort the figures like Earnings per share (EPS) due to its subjectivity.
2 pages (500 words) Essay
Finance/Accounting
(Murphy, 1999). However there are other related issues also which must be taken into consideration while setting up the compensations for the executives. I believe in our case the
3 pages (750 words) Essay
Finance/Accounting
Most developing countries concentrate on developing their banking system, who act as the transmitter between the savers and the ultimate consumers of this credit. The bank is considered as the legal means of providing lending and most attention is paid
2 pages (500 words) Essay
Project Finance, Accounting and Control
The approach of annual budgeting, with the inclusion of multi variables and numerous factors, emerge as a complex process. Consequently, the approach involves many advantages
8 pages (2000 words) Essay
Finance accounting
At time the valuation of the assets of the company gets inflated due to the method of valuation thus adopted by the company. Lastly, the reserves of the company is estimated and
6 pages (1500 words) Essay
Finance accounting
existence of accounting records is to minimize or reduce the effect of principal-agent problem; its impact is reduced by measuring and close monitoring of the performance and reporting the results to parties concerned. Financial accounting is a discipline which has evolved over
12 pages (3000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT