Advantages and disadvantages of sole proprietorship

 

o Based on the advantages and disadvantaged identified in your textbook for sole proprietorships, do you think a sole proprietorship can be successful for an extended duration? Provide examples to support your opinion.
o What are the tax benefits of a sole proprietorship versus a partnership?
o Describe common stockholders and preferred stockholders. Which one carries more advantages?
o Research a company that went through a merger or acquisition. Discuss the background of the merger or acquisition. Was this a good move for each company?

 

 

Sample Solution

Advantages and disadvantages of sole proprietorship

A sole proprietorship (also known as individual entrepreneurship, sole trader, or simply proprietorship) is a type of an unincorporated entity that is owned by one individual only. It is the simplest legal form of a business entity. It is fully possible for people who form sole proprietorship to be successful for an extended duration or even for their entire careers. Computer repair services, landscaping companies, and graphic designers are examples of occupations whose practitioners often form successful sole proprietorship. If you form a sole proprietorship, your business doesn’t pay taxes. You treat the profits as personal income and pay tax accordingly. The same applies to your share of partnership income. However, a C corporation pay taxes on its own income, and then the owners pay personal income taxes on their dividends.

John 2011). But in the western workplace, relationship and work is kept aside, targets are communicated to the employees. Employers expect that employees should share their problems with them and also come to the employers for further improvements in the business. Communication should be open from both sides. Due to large number of industries in Indonesia, cases of accidents at the workplace also has increased due to the wrong level of the machines, now Indonesian firms and Governments are arranging the machines according to the male and female posture levels. They are doing so for the well-being, health and comfort of the employees (Sutalaksana & Widyanti 2016). Indonesia has ranked fourth in the consumption of the cigarettes and as it has bad effects on the health of the people, So the WHO Framework Convention on Tobacco Control has taken initiatives for the safeguard of the people by banning this in the workplace and public places and in transportation. This is done by passing various laws.(Byron et al. 2013)
Social Stratification: In nineteen centuries, people was divided into various status system on the basis of races in Java. But in twentieth century, due to the economic changes and upgrading of western education the status pattern largely altered. Now discarding racial distinctions, education created the new status system like class of intellectual and non-intellectuals. These new classes challenged the European superior descents and also threatened the nobility status of Indonesian group. People are also stratified on the basis of religion like Islam, Arab Saudi and Kafir (White man). In previous years the people born in the Indonesia tried to hide their nationality but now have higher rank than Indonesian European and Indonesian Chinese. In present, people of European and Dutch nationality are not able to get good jobs and compete in Indonesia because of loss of status but some totok European and Americans are able to get good job if they not come in the category of labour market. Whether Peasants come in the large majority of Indonesia but actually merchant, intellectual and non-intellectuals come in the higher status system in the Indonesia (Wertheim 1955). JBR (Jakarta Bandung region) has largest urban population that is about 26.5% of the total population and has new infrastructure due to largest inve

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