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Export-Import Theory1
Ownership structure
1
Belay, S. (2009). Export-Import Theory, Practices, and Procedures. (2a ed.). New York: Routledge.
Sole proprietorships
What legal form affords the most advantageous tax treatment for the
business concern and individual entrepreneurs?
Which legal structure is easy and less expensive to establish and subject
to a low degree of government regulation?
1. taxliability:
It is the set of administrative actions carried out by the Comptrollerships in order to determine
and establish the responsibility of public servants and private individuals, when in the exercise of
fiscal management or on the occasion thereof, caused by action or omission
2. entrepreneur:
owner or executive of a company
3. appropriate business:
the correct order of the resources and precise functions to satisfy the objectives of any business
4. Ownership structure
examine different forms of business organizations: sole proprietorships, partnerships,
corporations, and limited liability companies.
5. Sole proprietorships:
A sole proprietorship is a firm owned and operated by one individual. No separate legal entity
exists
6. government approval
approval that something is right and legal for the government
7. assets:
Set of properties or riches that belong to a person or group
8. tax rate
It is a tax that records the usefulness of people, companies, or other legal entities
9. export:
are the set of goods and services sold by a country in foreign territory for its use
10. import:
they can be any product or service received within the border of a State for commercial purposes.
11. legal structure
represents the way the company is organized
12. owners
has the property of one thing, especially of a real estate
13. 1advantageous tax
Accounting treatment for investments with special treatment
14. capital
they are the goods and rights less the debts and obligations, of which the capitalist is the owner.
15. Management
Each form of business organization has its own advantages and disadvantages. For
example, a sole proprietorship, which is a form of business organization where a firm is
owned and operated by one individual, has the following advantages: firstly, sole
proprietorships are easy to organize and simple to control as they are inexpensive and
requires little or no government approval. Secondly, they are more flexible to manage
than other forms of business organizations such as partnerships or corporations because
the owner is the one that makes all operational and management decisions concerning
the business. Thirdly, they are subject to minimal government regulations versus other
business concerns. Lastly, the owner of a sole proprietorship is taxed as an individual, at
a rate lower than the corporate income tax rate and the proprietor is also allowed to
establish tax exempt retirement accounts. It can be noticed that sole proprietorships have
many advantages, however; they also have some disadvantages. For example, the major
disadvantage is the fact that running an export-import concern as a sole proprietorship is
the risk of unlimited liability; specifically, the owner is personally liable for the debts and
other liabilities of the business.