Partnership vs.Corporation (Taxation) Assignment

Partnership vs.Corporation (Taxation) - Assignment Example Advantages and disadvantages related to becoming a corporation Incorporating a business has many merits attached to it. A corporate business has many structures that make it enjoy protection from liability. Corporation also has ease of growth. It is also easy to transfer ownership to another. It is flexible and never rigid. The major disadvantage of a corporation is the double taxation that is levied upon the firm/corporation (Piper, 2008). The taxation is levied at the corporation level and the individual earnings are taxed. There are also fee charged for maintaining the status of a corporation and that of keeping and running corporate meetings throughout the year. In spite of these demerits attached to the corporation, it is important to note that it is easy for a corporation to go public. A corporation enjoys liability protection. In a corporation, owners and stakeholders are given indemnity from the debt incurred by the corporation. In case of the default and the bankruptcy of a corporation, owners and stakeholders do not come to be part of the debt. Therefore, individuals in the corporation cannot suffer. The personal assets and corporation assets are not interfered with in case a corporation is unable to pay its debts. Thought the corporation face double taxations; there exist cases where they are given tax breaks. A corporate business gains trust from the public and business entities as it is considered a professional entities. These give it business advantage due to its status and legality. Advantages and disadvantages of being in partnership Partnership is an agreement reached between two or more people to finance an organization or a business and run it together. In partnership, the business is independent from the partners however; the losses and profits flow through their individual taxes. Advantages of business partnership include: There are no complex details attached to establishing a partnership. It is easy to form The capacity to raise funds is greater as more partners have a higher bargaining power. They can thus get access to loans easily. There is a wider range of expertise skills. People often have different knowledge and skills; this puts the organization or the business at an advantaged position because of the possibility of varied range of knowledge and skills. Partnership can be cheaper t operate as each partner specializes in a section thus higher level of concentrated output. Partnership is important because partners mean good for the business; they thus provide moral support for each other. They may also open up for creative performance as they brainstorm Disadvantages of Business Partnership Business and the individual partners are directly liable for any action of the business and other partners The profits have to be shared in amongst people. This may raise conflict when one partner or partners feel that their contributions to the business are greater than other. This may create conflicts. There are various limitations associated with partnership, which makes it not conducive for rapid expansion. The main demerit associated with partnership is that individual members are liable to a greater degree for the liability of the business. 2. How partnership minimizes tax liability. Prepare a response as to why partnership was the best option Partnership is advantageous because it limits personal obligation to an individual but it indebts it to the partners in the organization collectively. Partnership is also

Human Resources - Compare and Contrast Interview Paper Essay

Human Resources - Compare and Contrast Interview Paper - Essay Example The individuals have been chosen for the study based on the fact that they have been involved in the core human resource activities for a significant number of years and have gained substantial knowledge and expertise on the subject too. The topic chosen for the study is compensation and the problems that employees face with regards to the same. The interview questions are prepared with the aim to bring forth the opinion of the two managers with regards to the effectiveness of the compensation policies in their organizations in terms of employee and organizational performance. The questionnaire is designed to help the two organizations make analysis of their respective human resource practices. Also the compensation package of employees is perceived as the value organization assign to their employees. An analysis of the same would reveal the employees’ worth in the organization as valuable assets. Comparison and Contrast of Interviews Various factors came forth with regards to the compensation structures of the two organizations and how satisfied were the employees with the compensation structure and policies of the organization.... Also considering the improvements in then labor markets, organizations have been driven towards the upliftment of the salaries of employees. Employers failing to do so confront with various human resource problems, such as dissatisfied and de-motivated employees, employees’ resistance towards work and their jobs. From the responses that follow, it is apparent that the former organization considers the industrial standards at the prevailing time before setting the salaries of employees. However, the latter sets its salary independent of the industry standards. The responses demonstrate that the former organization would face fewer problems in attracting and retaining human resource in comparison to the latter. With the upward inflationary pressures in most nations and rapid technological advancement organizations have been increasingly confronting with the problem of upward revision of the basic salaries of employees in terms of their dearness allowances. In such a condition or ganizations not considering the industrial standards would be faced with the problem of high employee attrition rates. Employees would be more tempted towards organizations offering higher salaries as salaries are the prerequisites of attracting and retaining talents in organizations. With the intense competition existing in the market, the compensation packages are the only and most important alternative left with the companies to motivate employees and attract them from the labor market. The increment system in the former organizations is found to be better and profound in comparison to the latter. Employees remain concerned about their career