A sole proprietorship has more advantages than a partnership. A sole proprietorship has more advantages because its run by only one person. When one person runs a business, that person has a great amount advantages due to he/she authority. They make their own decisions on how to run a business, they take in all profits, and its easy to create. In a partnership these advantages are gone as everything has to be shared between the partners.
I think sole proprietorships are so popular because they are easy to create. With a sole proprietorship theres no "middle man," you are doing everything on your own which makes them easy to create and therefore popular. With a partnership both partners have to be on the same page about everything for it to be started.
Tuesday, December 13, 2011
Friday, December 9, 2011
Chapter 3 Reflection
In this Chapter 3, I learned many new things about franchises and entrepreneurial trends. A franchise is a legal agreement for a person to start a business in the name of that recognized company. The franchisor sells the franchise to the entrepreneur for a fee.The entrepreneur or A franchisee (person who buys the franchise) will run that business under the company's guidelines. This is great way to become an entrepreneur as it will allow to run a business without all the risk and cost of starting their own business. There are many entrepreneurial trends and these include, internet businesses, service businesses, home-based businesses, socially responsible non-profit businesses, focus on technology, outsourcing, strategic alliances, and corporate ventures. Internet businesses has transformed the way business is conducted. 46% of the small businesses that use the internet have grown faster than the 46% of those who didn't use the internet. Service businesses dominate the modern American economy. Its the biggest and fastest-growing part of the American economy. Home-based business make a huge majority of businesses. This type of business is usually set up when people lose their jobs. Non-profit businesses are exempt from paying taxes but has to keep all profits in the business. This business is usually started up to help society. Focus on technology has a stronger chance of surviving. Outsourcing allows a small business to focus on what it does best while tapping into outside resources for expertise. A strategic alliance allows two businesses to join together to provide a service. One can't be without the other. A corporate venture is when a large corporation decides to start a smaller business inside of its corporation. An example of this is Nike which is a big corporation and starting Jordan inside of the corporation.
Thursday, December 1, 2011
Partnership Agreement
Name of the Business: J & D Sports Medical and Goods
Purpose: The purpose of our business to treat sport related injuries and provide sporting goods/equipment to help aid recovery. This benefits customers so that they will only have to make one stop
Duration of Agreement: 5 years
Character of Partners (general or limited, active or silent): Darrius: General and silent. Responsible for all equipment and ordering goods. Collis: Limited and active. Responsible for care of customers that comes to the establishment.
Business Expenses: Darrius is responsible for rent, cost of maintenance of the building and half of the equipment. Collis is responsible for utilities, insurance and cost of the other half of the equipment.
Division of Profits and Losses: All profits will be put together. Losses will be taken out of the profit from the business. The rest of the profits will be split equally.
Salaries: Salaries will be the same. Depends on profits at the end of the month.
Death of a Partner: Death of partner results in a sole proprietorship until a new partner is found. Royalty will be paid to the family of the deceased.
Handling Business Disagreements: Talk it out
Responsibilities of Partners: Darrius's responsilibities are ordering the equipment, paying rent, and cost of maintenance. Collis is responsible for customers and customer needs.
Purpose: The purpose of our business to treat sport related injuries and provide sporting goods/equipment to help aid recovery. This benefits customers so that they will only have to make one stop
Duration of Agreement: 5 years
Character of Partners (general or limited, active or silent): Darrius: General and silent. Responsible for all equipment and ordering goods. Collis: Limited and active. Responsible for care of customers that comes to the establishment.
Business Expenses: Darrius is responsible for rent, cost of maintenance of the building and half of the equipment. Collis is responsible for utilities, insurance and cost of the other half of the equipment.
Division of Profits and Losses: All profits will be put together. Losses will be taken out of the profit from the business. The rest of the profits will be split equally.
Salaries: Salaries will be the same. Depends on profits at the end of the month.
Death of a Partner: Death of partner results in a sole proprietorship until a new partner is found. Royalty will be paid to the family of the deceased.
Handling Business Disagreements: Talk it out
Responsibilities of Partners: Darrius's responsilibities are ordering the equipment, paying rent, and cost of maintenance. Collis is responsible for customers and customer needs.
Subscribe to:
Posts (Atom)