The project in five facts.
Challenge, approach and results.
The author of the diploma thesis presented two legally and organisationally different forms of conducting business activities, namely a sole trader and a limited liability company, examined their differences, advantages and disadvantages, and investigated the reasons for establishing a limited liability company. Using the concrete example of the sole trader AD under consideration, she determined whether her decision to establish a limited liability company was correct. Unfortunately, the final findings after the completed analyses do not confirm the correctness of the entrepreneur's decision in light of the recession in the construction sector. In 2007 and 2008, the entrepreneur still managed to realise profit optimisation (by establishing a limited liability company), but in 2009 and 2010, business realisation decreased significantly (there were no profits or tax bases).
Problem
The author of the diploma thesis presented two legally and organisationally different forms of conducting business activities, namely a sole trader and a limited liability company, examined their differences, advantages and disadvantages, and investigated the reasons for establishing a limited liability company. Using the concrete example of the sole trader AD under consideration, she determined whether her decision to establish a limited liability company was correct. She found that the entrepreneur's decision at the given point in time was correct under the assumption that the positive business trend in the construction sector would continue.
Both business entities are engaged in finishing works in construction and are subcontractors to larger construction companies.
Results
Unfortunately, the final findings after the completed analyses do not confirm the correctness of the entrepreneur's decision in light of the recession in the construction sector. In 2007 and 2008, the entrepreneur still managed to realise profit optimisation (by establishing a limited liability company), but in 2009 and 2010, business realisation decreased significantly (there were no profits or tax bases). In the analysis, she highlighted the tax perspective of both business entities.
The tax perspective was precisely the greatest motivation for the entrepreneur to decide to establish a limited liability company. The blame for the situation that arose can be attributed to the current state in the country (financial and economic crisis), market conditions, and consequently this was followed by a drop in realisation in the company. The reason for the drop in realisation is the recession, which in the country first affected the construction sector and began to show itself as early as the end of 2008.
No end to this is visible even today, as the crisis in this sector is only deepening.
Module, programme and stories.
Your diploma project for a real company.
A diploma thesis at Academia solves a challenge from a company – often the one where you do your 800 hours of placement. Read about the Računovodstvo module or book a consultation.