A Company Analysis Of Cox Enterprises, Inc

Name Professor Subject Date Company analysis of Cox enterprises. Cox enterprises, Inc is a privately owned American company based in Atlanta. It is also a communications and automotive services corporation. The economic factors that affect businesses for Cox enterprises include interest rates, inflation, taxes, recession, and demand and supply, (Edel and Abraham). Interest rates have a direct effect on the loans that a business takes to withstand and propel its growth. When interest rates are high, then the business would find it difficult committing to projects that entail substantial investments. An economic recession can change the purchasing attitude of a potential customer forcing the company to drop the prices of its products or clear smaller volumes. Inflation causes an increase in prices of products and also an increase in the cost of raw materials needed for production. Cox investments would be forced to increase the rates of services to sustain business. Taxes that the government impose on companies affect the running of businesses, (Edel and Abraham). Companies are forced to hike prices of their products if the taxes are very high. Some government policies for regulations in businesses for human and environmental safety can also have economic effects on businesses. The pros and cons of the different forms of business ownership. Sole proprietorship. A sole proprietorship is easy and inexpensive to establish. They carry little formalities, and the assets of the owner can be freely mixed with business assets. A sole proprietor does not have to pay unemployment taxes, (Saebi, et al.). The cons include difficulty for the owners to increase capital through trading of interests. Sole proprietorship rarely survives the incapacity of its owner or death. A sole proprietor is subject to an unlimited obligation for the debt, losses and charges of the business. General partnerships. The procedure to set up is easy and inexpensive. Partnerships require few ongoing formalities and do not need annual meetings. They are not required to pay the minimum taxes that are needed by LLCs and corporations. Despite the pros, the unlimited individual accountability for the debts, losses, and obligations of the business by owners. Individual partners have to bear accountability for actions of other partners, and this can lead to dconflict between partners. The Limited Liability Company (LLC). LLC offers the liability protection benefits without the burdensome formalities of corporations. It is a simple and flexible in that the LLC management can select to be taxed as partnerships or corporations. LLC can choose to be run like a corporation or ignore the formalities of a corporation, (Saebi, et al.). The cons of an LLCs include the little legal guidance that is available to address issues of operations. Also, Project investors tend to avoid investing in LLCs. An LLC is not a suitable means for a business to become a public venture. They also require yearly fees and periodic filings with the state. The Corporation. The owners of a corporation are protected from individual responsibility for business debts and responsibilities. Corporations also have a dependable legal framework to direct owners. ...