MANUAL Discussion Questions 1. [LO 1] What are the more common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes? Answer: Corporations‚ limited liability companies (LLCs)‚ general and limited partnerships‚ and sole proprietorships. These entities differ in terms of the formalities that must be observed to create them‚ the legal rights and responsibilities conferred on them and their owners‚ and the tax rules that determine
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creating a separate business or trade name isn’t necessary. Sole proprietorship is also known as "proprietorship". There is no separate legal entity created by a sole proprietorship‚ unlike corporations and limited partnerships. Consequently‚ the sole proprietor is not safe from liabilities incurred by the entity. The debts of the sole proprietorship are also the debts of the owner. However‚ all profits flow directly to the owner of a sole proprietorship. The benefit of the sole proprietorship
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L3000 Practice Exercise-Unit 4-Miller and Jentz 6e Multiple Choice - Agency Fact Pattern 17-1 (Questions 1-3 apply) Roz and Sara work as clerks in Trina’s Hot Clothes Shop. Trina withholds fed eral taxes from their pay‚ and controls the methods and details of the perform ance of their work. Roz and Sara are not au thorized to modify the prices or other terms of a sale at the shop. 1. Refer to Fact Pattern 17-1. Trina authorizes Roz to sell clothes at remote lo cations at prices that Liz
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CHOOSE FULL OR LIMITED SERVICE *Specialty accommodations-conference center‚ lodges‚ bed & breakfast‚ boutique hotel‚ hostels and campgrounds Institutional housing-schools‚ military‚ hospitals and adult living Location/Logo/Business card *Location-neighborhood‚ center city‚ suburban‚ highway‚ airport‚ resort and cruise *City‚ State‚ Phone # and website *Make a business card with logo on an index card or text box on computer *Write a story of your restaurant
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distributed as dividends to shareholders. 21. Limited liability companies (LLCs) are very popular today as a form of organization. Assume a client asks you to explain what this type of organization is all about. Prepare a brief description of the federal income tax aspects of LLCs. A Limited Liability Company or LLC is a legal form of business organization with daily activities like a partnership but with limited liability similar to a corporation. An LLC is formed in the
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on the concerns you provided with your email. I believe that a company of your size‚ profitability‚ and future direction would be well suited to a Limited Liability Company (LLC). An LLC would allow you to enjoy the benefits of a corporation’s limited liability while also allowing you the options of being taxed like a sole proprietorship‚ partnership‚ or a corporation depending on what best fits your company. It is highly advised that you consult a qualified tax attorney to decide what type of
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Running head: SMALL BUSINESS IDEA PAPER 1 Small Business Idea Paper Napoleon Melton‚ Jr. ACC/561 September 5‚ 2011 James Sullivan SMALL BUSINESS IDEA PAPER 2 Small Business Idea Paper Establishing a small business requires the cultivation of a business idea to a business plan that successfully outlines its unique product or service‚ the rationale for choosing the business organization in particular for the unique product or service‚ and the financial statements & implications associated
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1.5.2: An Illustration of the Conceptual interpretation of Limited Liability versus lifting the veil: The decision in Salomon V. Salomon & Co.23 The case of Salomon V. Salomon & Co.‚ commonly referred to as the Salomon case‚ is both the foundational case and precedence for the doctrine of corporate personality and the judicial guide to lifting the corporate veil. The House of Lords in the Salomon case affirmed the legal principle that‚ upon incorporation‚ a company is generally considered to be a
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certain specials are ran. Fast Lane has been able to begin relationships with several fleet companies that depend on their services to have the vehicles running properly in order for their businesses to run smoothly. Fast Lane Automotive is a Limited Liability Company and the main operating activities are the automotive services they conduct to ensure the customers vehicles are running properly. Other activities include ensuring payroll for each of its employees is correctly done so that the employees
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Assignment#1: To Build or to Buy by Professor; Business 402-Small Business Management 01/29/2013 Assignment # 1: To Build or Buy Craft a brief strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail. The Business strategy which I would use would be to purchase an existing Bagel and Tea shop located in the heart of Rockville
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