Question

develop a 1,050-word evaluation describing a business structure and financial statements, including the following:

Identify and describe the legal categories of a business organization contrasting tax-related advantages and disadvantages.

Next, using your entrepreneur skills, consider starting your own business. What business structure would you choose and why?

Discuss financial statements for the chosen business structure, then explain with specific examples from the University Library, how these would help you make decisions about your business.

Cite a minimum of two peer-reviewed references.

Format your paper consistent with APA guidelines. ?

Answer 1

Evaluation describing a business structure and financial statements:

Lets assume we have two Parties - Daniel and Stefan, who are willing to enter into a business contract as per the terms and conditions mentioned below.

Daniel entered into a contract with Stefan, an offer was made and the acceptance was approved. A common mistake that is made when making a contract is the price validity. A contractor or service provider needs to have in their contract a wording indicating that prices are subject to change or an openterm within the contract. This wording provides for the servicer to change the agreement price due to material increase, fees, and extra work that a customermay want to add. The same goes with the time frame of paying. A schedule of payment must be indicated on the contract to fulfill obligations. An open payment term says that payment is due when labor and services are completed. “Goods that are accepted must be paid for. Unless the parties to a contract agree otherwise, payment is due from a buyer when and where the goods are delivered, even if the place of delivery is the same as the place of shipment”. Because Daniel did not list in the contract the correct terms to indicate a price increase or subject to change and a payment schedule, Stefan can pay a reasonable price.