Capitol Tax Capitol Income Essay - 1729 Words

Capitol income Capitol income is the money invested by the owners or outside investors that is used as a foundation to set up the business or buy supplies and additional equipment. It is usually used to purchase such things like vehicles, rent or buy premises or equipment that will stay with the business for the majority of its time (theses are referred to as fixed assets). Capital income available to a business varies on the type of business it is. Sole trader- A person who owns a business on their own is called a sole trader, they therefore have to supply all the capital income from their own sources or reach out to a bank using their own assets, such as their house to secure a start-up loan, therefore this makes the investment very high risk as they are solely responsible for all debts the business may come into. The size of the business can also be affected because of this however if the business becomes successful the owner can keep all of the profits to himself/herself. Partnership- Not unlike a sole trader however a partnership is when two people join together to set up a business. Both partners are expected to contribute equally towards the capitol income, therefore increasing the potential amount of profit available to the owners. Any start-up loans used as a foundation for the business are still secured by the partner’s own assets which although makes a partnership not as risky as the sole trader but it’s still quite a high risk option. Shares- The capitol of aShow MoreRelatedA Proposal Of A Business Idea1532 Words   |  7 Pageslunch. 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