CODE: DIM 1004

BUSINESS ACCOUNTING

ASSIGNMENT

NAME NRIC H/P

: MICHELLE CHIA KAR YAN : 930609-14-5906 : +60126198968

STUDENT ID: 200170 Lecturer Name: Mr Douglas

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1.0 CONTENT

NO 1.0 2.0 3.0 4.0 5.0 6.0 7.0

TOPIC CONTENTS DEFINITION OF LIMITED COMPANY DEFINITION OF SOLE TRADER BACKGROUND OF TOYOTA MOTOR COPORATION BACKGROUND OF KINGS BOOKSTORE BENEFITS OF LIMITED COMPANY OVER THE SOLE TRADER HISTORY OF BAVARIAN MOTOR WORKS (BMW)

PAGES 2 3 4 5-6 7-8 9-10 10-12

8.0 9.0 10.0

CONCLUSION REFERENCE COURSEWORK

13-14 15 16-17

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2.0 Definition of Limited Company

A limited company is a firm in which the liability of the members or subscribers of the firm is limited to what they have funded or assured to the firm. Limited companies may be limited by shares or by assure. And the former of these, a limited firm limited by shares, may be further divided into public companies and private companies. Who may become a member of a private limited company is restrained by law and by the corporation's rules and regulations. In contrast anyone may detriment shares in a public limited company. After that, there are three kinds of limited company. One of the limited company is private company limited by guarantee. This corporation has share capital, but is guaranteed by its members who smile on or agree to pay a fixed amount in the event of the firm's liquidation. Another limited firm is private company limited by shares. This private corporation has shareholders with limited liability and its shares may not be offered to the general public. Shareholders of private companies limited by shares are often bound to offer the shares to their fellow and co-worker shareholders prior to selling them to a third party. Thirdly, Public limited companies can be publicly transaction on a stock exchange.

A limited company is formed by filing many types of documentation to the office designated by the state statute. An Articles of Organization indicates the ownership structure of the business. It also indicates other information such as the business to be conducted under the limited corporation, the capital contribution and the members. An Operating Agreement is a documentation that indicates the management structure of the business entity. The management of the business can either be done by owners or by an external manager.

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3.0 Definition of Sole Trader

A sole trader is the easiest form of business structure. It is also a form of business in which one person owns all the assets of the business, in contrast to a partnership or a corporation. It is also relatively liable and inexpensive to start and preserve. Many sole traders choose to trade under their own name. For example, Karen Tan, while others choose to which must register a business done with the relevant authority in every Singapore state in which you plan to do business.

As a sole trader you must retain and keep complete control of your business. There is no division between business assets or personal assets which contains your share of any assets jointly owned with another pupil (such as your house or car). Your liability is unlimited which means that individual assets can be used to pay business debts. Besides that, sole trader must pay income tax at individual tax rates. Some traders are taxed as personal and pay income tax at personal tax rates. This means your business income is announced on your personal tax return along with any other assessable income (such as your monthly wages, interest, dividends). Sole traders are different to the managers of a corporation or a partnership, a sole proprietor has total flexibility in running and controlling the business. The company expenses and level of formality in a sole proprietorship are minimal as compared with those of other business firms. However, because a sole proprietorship is not a separate legal entity, it put off or terminate when the sole proprietor becomes disabled, retires, or dies. As a result, a sole proprietorship lacks business continuity and does not have a perpetual or everlasting existence as does an organization.

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4.0 Background of Toyota Motor Corporation

Toyota Motor Corporation commonly known simply as Toyota and abbreviated as TMC is a multinational automaker headquartered in Toyota City, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide, and was the world's biggest automobile manufacturer by production.

The company was discovered or founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created and produced its primary product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group corporations are Toyota, Lexus, Daihatsu and Hino Motors, along with several "non-automotive" firms. TMC is part of the Toyota Group, one of the largest and huge conglomerates in the world.

In the start of 1980s The Toyota Motor Company received its first Japanese Quality Control Award at the began participating in a wide variety of motorsports. Due to the 1947 oil climacteric, consumers in the lucrative US market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an "entry level" output, and their small vehicles employed a low standard of quality in order to maintain the price low.

Toyota began to branch out from outputting mostly compact cars by adding many larger in the 1990s. More luxurious and sumptuous vehicles to its lineup, including a fullsized pickup, the T100 (and later the Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara; and the Scion brand, a group of several affordable, yet sporty, automobiles targeted and goaled specifically to young adults. Toyota also began
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production of the global best-selling hybrid car, the Prius, in 1997.

On December 7, 2004, a US press liberate was issued stating that Toyota would be offering Sirius Satellite Radios. However, as late as January 27, 2007, Sirius Satellite Radio and XM Satellite radio kits were not available for Toyota factory radios. While the presses liberate enumerated nine models, only limited availability existed at the dealer standard in the United States. As of 2008, all Toyota and Scion models or patterns have either standard or available XM radio kits. Major Lexus dealerships have been offering satellite radio kits for Lexus vehicles since 2005, in addition to factory-equipped satellite radio models and formers.

In 2007, Toyota liberate an update of its full size truck, the Tundra, produced in two American factories, one in Texas and one in Indiana. It also began the construction of two new factories, one to build the RAV4 in Woodstock, Ontario, Canada and the other to build the Toyota Prius in Blue Springs, Mississippi, USA. This factory was originally intended to build the Toyota Highlander, but Toyota resolved to use the plant in Princeton, Indiana, USA, instead. The company has also found recent success with its smaller modelsthe Corolla and Yarisas gasoline prices have risen rapidly and high-speed in the last few years later.

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5.0 Background of Kings Bookstore

Kings bookstore does not need to notify Companies House, nor deal with any administrative or accounting requirements which are required of limited firms. But Kings bookstore is a sole trader. Kings bookstore does not involve paying any registration fees, storage records and accounts are straightforward, or get to save all the profits. However, Kings bookstore is personally liable for any debts that the business runs up, which make this a risky and adventure option for businesses that requirement a lot of investment.

On the other hand, Kings bookstore makes all the decisions on how to manage and raising finance on his business. Kings bookstore may raise money for the business out of his own assets and with loans from banks or other lenders. Kings bookstore must preserve records to showing the business income and expenses. As a sole trader, you are personally responsible for any liability run up by your business. This means your home or other assets may be at adventure and risk if your business runs into trouble. Kings bookstore should be aware that will be personally liable for any debts you incur in the running of your business which wouldn't be the case under the limited company route. On the aspect of tax and national insurance, as a sole trader, Kings bookstores income is counted alongside any other individual income that have for tax purposes, so accounting is relatively straightforward.

Besides, tax of Kings bookstore is calculated via the annual self-assessment process. Kings bookstore will have to pay income tax and National Insurance Contributions (NICs) on his profits. Any losses you make can be offset against your other income.
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Kings bookstore should think about taking out the appropriate business insurance cover for your new venture and risk. Some species of insurance are mandatory (such as if you employ people), whereas others will simply provide peace of mind that the business will be defended and protected in case something goes wrong or get in trouble. Kings bookstore will look at taking out public liability insurance and employers liability cover, as well as any other policies required for industry-specific reasons, or if clients need it.

As a sole trader, Kings bookstore will most likely want to open a business bank account. There is no legal requirement to open a separate bank account to personal one, but many sole traders elect to do so. It may be simpler and easier for accounting purposes, and look more professional. The choice is up to owner. Don't necessarily open an account with owner personal bank account, as Kings bookstore may get a better deal elsewhere. Kings bookstore will often find that the major high street banks offer 12 to 18 months' free banking, which can represent a significant saving in monthly transaction fees.

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6.0 Benefits of Limited Company over the Sole Trader

Firstly, a private limited company benefits include limitation of liability. There is no differences between business money and individual money for anyone self employed as all business debts are the personal responsibility of the sole trader. The private limited firms benefits are that the corporation is a separate corporate body and liability for payment of debts stops with the private limited corporation, the owners, and shareholders are not personally liable. The directors are only liable if they keep on to trade and incur liabilities after it becomes apparent the limited corporation is insolvent.

Limited Company accounts and Sole Trader basic accounts. Sole trader basic accounts can be quite simple and easy as a formal accounting system is not necessary and can be reduced to simple lists of income and expenditure supported by documentary evidence of sales and purchase invoices, effectively personal entry bookkeeping. Providing a balance sheet is optional. Due to the simplicity then an accountant may not be necessary saving a significant cost. Limited corporation accounts have to use double entry bookkeeping to produce the year end accounts containing a balance sheet with statutory notes and statements. An accountant is not necessary for a small private limited company but is the regular approach and offsets some of the tax benefits.

Furthermore, additional considerations financial in limited company. Because a chairmen is also officially an employee of the private limited firm this gives rise to a number of considerations in determining the extent of a private limited company benefits. On the other hand, pension contributions of a sole trader are personal and while may be deducted from the individual income liability do not form part of the basic accounts. The pension costs containing any firm contribution to a pension scheme by a private limited company is a
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deductible business expense as a staff cost.

Administration, management and business standing. A sole trader basically pleases themselves with regard to the administration and management of the business. A firm chairman is responsible for adhering to corporation administration according to statutory rules and regulations in regard to both the limited company accounts, statutory books and administration as stated in the articles of association. The duties of a chairman are more formal than a sole trader.

7.0 History of Bavarian Motor Works (BMW)

Bayerische Motoren Werke or Bavarian Motor Works (BMW) is a German automobile, motorcycle or engine manufacturing corporation since 1916. It also owns and produces the Mini marquee, and is the parent company of Rolls-Royce Motor Cars.

After the end of World War I in 1918, BMW was forced to stopped aircraft engine production by the terms of the Versailles Armistice Treaty. The company was shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in 192829.

In the German city Eisenach in 1927 began the production of Dixi under license but only a year after that the Dixi Company was bought by BMW and they began mass production together with the model Austin Seven.

In 1924 BMW made a model of a motorcycle which was the first one they built - the R32. This was a turning point in the BMW history because it was a major achievement and
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for decades they used its technology 500 cc engines cooled down by the air. Soon after that BMW added one new innovation the driveshaft. It came to replace the chain for driving the rear wheel and became a mark of BMW for quite some time. . Soon after that BMW added one new innovation the driveshaft. It came to substitute the chain for driving the rear wheel and became a mark of BMW for quite some time.

By the year 1959, the automotive division of BMW was in financial problem and a shareholders meeting was held to decide whether to go into liquidation and find a manner of carrying on. It was decided to carry on and to try to cash in on the current economy car upsurge enjoyed so successfully by some of Germany's ex-aircraft manufacturers such as Messerschmitt and Heinkel. The rights to manufacture the Italian Iso Isetta were bought; the mini cars themselves were to be powered by a modified form of BMW's own motorcycle engine. This was moderately bonanza and support the company get back on its feet.

Chief designer Chris Bangle announced his departure from BMW in February 2009, after serving on the design team for nearly seventeen years. He was substituted by Adrian van Hooydonk, Bangle's former right hand man. Bangle was known for his radical designs such as the 2002 7-Series and the 2002 Z4. In July 2007, the production rights for Husqvarna Motorcycles was purchased by BMW for a reported 93 million euros. BMW Motorrad projects to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production doings, as well as the current workforce, have stayed in place at its present destination at Varese.

In 1994, the company began production outside Germany and new factories were set up in South Carolina, Oxford, Goodwood, South Africa and other places. Today, BMW exports around 50,000 yearly vehicles to Japan, USA, Africa, Australia and the Middle East.
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Till date, the Z3, Z8 and all 3, 5, 7 and Motorsport series models are built keeping the BMW tradition of producing excellent automobiles with special emphasis on performance, style and technological advancements. Over the last few decades, BMW has built a standard for performance and luxury in most segments. It offers a wide range of family-friendly wagons, crisp sedans, distinctive coupes, nimble sports cars and spacious SUVs.

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8.0 CONCLUSION
In this chapter, we have discussed mainly benefits which can be accomplished with the limited company.

A full description of limited company would take a volume to properly discuss, and the issues are terribly complex, despite the simplicity with which they are presented in this memorandum.

Whether one is best served by an limited company in any given situation, and how the limited company should be operated is a determination that depends are specific facts unique to each case, containing the laws and rules of the state under which it is formed. Competent or experienced counsel should be consulted before undertaking any business venture, particularly one as complicated and as poorly understood as limited liability companies. Accordingly, nothing herein is to be interpreted as legal advice as such advice can only be rendered upon a complete comprehending of all of the relevant facts in any particular or special case.

Second, if someone does file a lawsuit, we want to protect and defence your assets from liens and attachments. Prejudgment attachments are filed during a lawsuit and able to freeze your real estate and bank accounts. Without access to funds to pay your individual and business expenses or to defend the case, you are, as they say, dead in the water. You will have no choice except to make a fast and unfavourable settlement, that means giving the

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plaintiff all or most of what he wants. Similarly, a judgment lien will attach to all property that you own. You will be unable to sell, refinance, or collect rents on your property; and all accounts will be seized. An asset protection plan will allow you to shield your property from liens and attachments during the lawsuit and after a judgment. Clearly this puts the negotiating chips on your side of the table and provides you with powerful leverage to create a successful result.

On the other hand, sole trader describes a business that is owned and controlled and managed by one person, although the business may employ people. Generally speaking sole traders adopt a trading name (doing business as) and therefore the business has no separate legal and rules existence. As a result, the sole trader, the owner, although entitled to receive all of the nett income or profit, is also personally liable and responsible for the debts of the business. This is referred to as unlimited liability.

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9.0 REFFERENCE
1. www.google/limited company.com 2. www.wikipedia/advantage of sole trader & limited company.com 3. www.toyota motor.com 4. www.BMW.com 5. www.answer/sole trader.com 6. Text book (Business Accounting Edition)

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