C Corporations, S Corporations, and LLCs

C Corporations

Advantages
*offers employee stock incentives
*easier to raise capital as a whole instead of as a sole proprietorship or partnership
*utilize health care benefits at a corporation

Disadvantages
*cost more to start then a sole proprietorship or partnership
*not efficient
*more taxes

S Corporations

Advantages
*minimize taxes
*easier to raise capital as a whole instead of as a sole proprietorship or partnership
*protection of limited personal liability without paying taxes

Disadvantages
*cost more
*has many requirements
*closely watched by IRS

LLCs (Limited Liability Company)

Advantages
*personal liability protection
*can draw own contract
*can have many different interest

Disadvantages
*does not offer incentive stocks
*requires at least two members
*earnings are subject to self-employment tax

Enron Article

The big Arthur Anderson accounting scandal is a shocking story based off of business ethics and honesty. Not only did this shocking scandal affect Enron, it affected many partners of Enron. In 1989, Enron had joined the European energy market. When this shocking scandal was revealed Enron happened to be in Teesside, Engand working on a turbine power plant. Today Enron still runs power stations in the European area.



enron article page

Bigger Than Enron

Breaking news! Arthur Andersen, 89 year old accounting firm going bankrupt due to bad accounting. With honesty and and proper performance they could have abstained from such things. Members of the of the company should have just focused on doing it right the first time. Instead of trying to create all these loopholes, in which did not end up benefiting them in the end. Like Arthur Levitt said "Something as big as Enron did not just happen overnight". He believes that the Enron scandle was "a breakdown of the ethical values of business over a period of perhaps 20 years. So I would advice other people and other companies to learn from this accounting scandal.

Enron info
Arthur Levitt

On Balance Article Summary

Beware of that Blinking Red Light

This article "Beware of that Blinking Red Light" informs people more about crime insurance. When a business has crime insurance their best bet is to get another one that goes with it, to support it. They say this because crime insurance does not cover a lot of things. So they advise you get another one to pick up the slack from crime insurance. This means when ever crime insurance does not help the other one will. I liked this article because it informs business what they need to do to stay protected. Also, I like this article is very helpful to new business owners as well as the old ones who are not yet informed.

Steve Ryan. "Beware of that Blinking Red Light" On Balance Date: November/December 2010 Pages 28-29

Financial Statement Analysis

List the "Total Revenue or Net Sales," "Total Expenses," and "Net Income" or "Net Loss" for each company.
walmart(millions)
     > net sales $112,826
     >total expenses $85,311
     >net income $27,515
walmart information link
Target (millions)
     > net sales $63,435
     >total expenses $44,062
     >net income $65,357
target information link

For each company, calculate and record the component percentages for total expenses and net income by dividing each item by the amount of net sales.  round the percentage calculations to the nearest 0.1%
Walmart
     > total expenses  75.6%
     > net income 24.4%
Target
     >total expenses 69.5%
     >net income 103%

Compare the component percentages for net income for each company.  Which company has the better component percentage.
Target has a better componet percentage because they had over a 100 percent increase in their income.

     

Fiscal Period

Description of the company you choose, and why you picked it.
I picked the wonder business Walmart to write about, because lots of people go there and it is a place where anyone can go. Plus they are open 24 hours!

Link to company financial statements that show the fiscal period.
Link to company financial statements that show the fiscal period.

Explain when the fiscal period is....
The fiscal period is on January 31.

Describe why you think the management of the company feels that is a good time for a fiscal period.
I think the management of the company feels January 31  is a good time for a fiscal period, because they figure most people have came to the store  for Christmas shopping and used their Christmas gift cards.