Business Environment Applications I Business Structures and Legal Environment - D078 TASK 2

Josue is part of a business entity in which the parties are protected against personal liability for business debts.What type of business entity is this? Is it able to be registered as a brokerage? It is an LLC. It may NOT be registered as a brokerage It is an LLC. It may be registered as a brokerage. It is a corporation. It may be registered as a brokerage. It is a corporation. It may NOT be registered as a brokerage

9. Corporations can pay lower taxes than partnerships. O True O False

Todd and Mary own a local store. They would like to establish a business plan to ensure it will continue to operate in the event an owner becomes disabled or dies. They do not want to change the structure of their business nor do they want to relinquish any control of the company. Which one of the following statements satisfies Todd and Mary's goals? A)A buy-sell agreement would allow them to continue operating the company without additional participants, while a recapitalization could decrease their ownership interests.     B)A buy-sell agreement should be used because it assures the owners of a market for their business, while a recapitalization does not.     C)A buy-sell agreement should be used because it allows the owners to set a desired purchase price in a private agreement that cannot be scrutinized by the IRS.     D)A buy-sell agreement would enable the owner to create a market for the business; however, gift tax may be incurred when interests are gifted.

I think it might be the second or last option but I am not sure.

the founder and chairman of the company is the same person. if he later sells the company and becomes executive director, will there be a conflict of interest? How could this be a corporate governance and ethics issue for the company and what steps/structures should be put in place to prevent this?

44-Why would someone put up a sole proprietorship? To enjoy all profits that can be made from the business To take control of all the aspects of the business All options are correct To make all decisions regarding the business

You have incorporated a business which a pack of Tommies now seeks to take over. You oppose this and also feel that the Tommies should use their "education" and start their own business instead of taking the easy way by trying to acquire your successful business. However, your shareholders have been offered a higher than market value for their shares by the aggressor. Briefly describe your duties and responsibilities as an officer/board member to your shareholders. 2 Based upon the price offered by the Tommie group, your shareholders appear to be in favor of this take-over. Identify and describe (6) methods that would enable you to effectively resist the take-over.

5. Which of the following distinguishes a partnership from a corporation? A) A partnership is formed by two or more owners. B) There is a relative ease in financing the operations and investments of the company due to owners pooling their resources. C) Multiplicity of owners is beneficial for brainstorming. D) The liability of the firm generally extends to its owners. 6. Which of the following best describes agency cost? A) Costs involved with any effort to minimize the conflict between the principal's interest and the 2/3. B) Cost incurred by an agent to facilitate the creation of an agency relationship with theirprincipal. C) Cost incurred by a principal to establish an agency. D) Agency costs are irrelevant costs that are not measurable nor recognized in the face of the Financial Statement and is therefore not a cost to a company. in the long-term. 7. Which of the following is a valid reason why Financial Managers should put emphasis on long-term growth rather than short-term profit…

I have a new client wanting to purchase a franchise retail operation. What would be 8-10 questions you would ask the client that would help your legal team in structuring the business, forming their entity documents, and advising them on employee operations.

4) The decision-making process in a partnership tends to be faster when A) there are numerous partners who all want to solely control the management of the 4) business. B) there are few partners and all of them are involved in the day-to-day activities of the business. C) the partnership is a domestic corporation with numerous partners. D) there are numerous partners, and the firm has issued public stock. E) the partnership is a foreign corporation that conducts its business outside the state in which it was incorporated.

How fill Form 1120 Corporations with this info: (it's a fake company) For learning purposes only The OMS Staff Solutions II company is a for-profit company registered as a corporation, with employer social security number 26-3029054, incorporated on January 2, 1994. The address of this company is 960 Amick Loop, Lakeland, Fl 33815. According to the company's books, there were the following items both at the beginning of the taxable year and at the end.                                                                                                                                Balance at the end of the year Dec. 31 2021Sales                                                                                   $5,500,000Salaries, commissions and bonuses to employees             900,000Federal Social Security                                                       620,000Medical insurance                                                               20,000Insurance…

The S-corporation form of organization allows a corporation to avoid double taxation.;True or False

Which of the following is not true of a limited liability partnership? * Most states restrict this form of ownership to certain types of O professions such as attorneys, physicians, dentists, accountants, etc. It must involve a general partner, a limited partner, a silent partner, and a dormant partner. Although LLPS have many of the O characteristics of partnerships, they are taxed as a corporation. All partners are limited partners.

When a general partnership is sued, the lawsuits often go after the more wealthy partners, ( a) True 0 b) False

1. Doris has heard that one of the company’s competitors has been visited by a health and safety inspector and she is worried that they might be next. Advise the company on Doris’s concerns regarding health and safety of their workers involved in manufacturing.2. What are the various taxes that would apply to a limited  company trading manufacturing?

Suppose you have to start business dealings with a company named “XYZ” how will you document the conditions both parties agreed or disagreed on and what are the considerations for such agreement?

Mark and Matt co-own an auto repair shop 50/50. They each schedule their own customers, use their own tools and supplies, and collect payments from their customers. They each pay half of the utilities and the property taxes.   (A) Mark and Matt are a partnership because they co-own the business and both work at the location. (B) Mark and Matt are co-owners of the property but run their businesses independent of each other. They split certain building expenses. They are not a partnership. (C) Mark and Matt are a partnership and must file a Form 1065. (D) Mark and Matt must file as a partnership and set up a formal agreement because they split the cost of the utilities and property taxes.

A partnership agreement should include all of the following EXCEPT:   (A) An indication of each partner's percentage of profits or losses. (B) The amount of cash or property which has been contributed by each of the partners. (C) How reimbursements for out-of-pocket expenses will be handled. (D) The amount of each partner's salary that they will receive each year.

1-All businesses must start out as sole proprietorships before they can be partnerships. True or False 2-The right of survivorship attaches to joint tenants. True or False 3-Degree of control that one person exercises over the other is sufficient to determine whether there is an employment relationship. True or False

pls help ASAP

After discussion, the decision is to choose to operate as a C-Corporation. As a part of this organization, you all decide you want to set up an education reimbursement program. You have decided to categorize this under two groups: 1) continuing education and 2) reimbursement for tuition in pursuit towards a master’s degree. Provide discussion of the difference between how each will be taxed to the corporation and the employees under each case.

Razor, Inc. tyros , Inc two automobile companies merged reducing the number of corporations competing within the automobile industry this merger is an example of a ? A)vertical merger B)leveraged buyout C)shark repellant merger D)a sole proprietorship E)a limited partnership

Evette and Rhumbi have known each other from university. Evette has a degree in marketing andRhumbi is a talented application (app) developer. They decide to work together to create aplatform for struggling professionals who want to earn a living without the stress of looking forclients. They trust each other and want to start a business that is representative of theirfriendship. They decide not to register the business as a legal entity as this could cause delays.They were really keen to get started!They have approached you for advice on the following: Q.1.1 Provide a short note on the best business enterprise for Evette and Rhumbi withreference to the facts. Your answer should include:• the basis or founding documents for the formation of the enterprise;• a discussion of the essential elements of the enterprise; and• the statutory formalities, if any, for this type of enterprise to be formed.Q.1.2 They are aware that things don’t always pan out as intended. They would like a listof…

What is one of the primary roles that agency law plays in partnerships?   Group of answer choices: A. Controls formation of the entity. B. Dictate how the partners can operate the business. C. Whether or not a partner can bind the partnership to obligations or liabilities. D. Dictates what the operating agreement must state..

Felicia is starting an e-commerce business. She is deciding which entity to use for the business. All of the following are true related to entity characteristics, except: O You don't necessarily have to create an entity to operate a business. O Cash taken out of partnerships/S-Corps by owners is generally not taxable. O Partnerships and S Corporations, generally, do not pay entity level income taxes OC Corporations pay an entity level tax and any dividends to shareholders are not taxable.

What business form would be most appropriate for Tim’s and why? Explain the benefits and drawbacks of the business form you chose. Explain which general state and federal laws (see resources below) might impact registration of Tim’s business, due to the fact that it is a restaurant business.