S1-1. (Learning Objective 1: Explain and differentiate between business organizations)Hudson Signs, Inc., needs funds, and Alley Hudson, the president, has asked you to considerinvesting in the business. Answer the following questions about the different ways that Hudsonmight organize the business. Explain each answer.a. What forms of organization will enable the owners of Hudson Signs, Inc., to limit theirrisk of loss to the amounts they have invested in the business?b. What form of business organization will give Alley Hudson the most freedom to manage the business as she wishes?c. What form of organization will give creditors the maximum protection in the event thatHudson Signs, Inc., fails and cannot pay its debts?
S1-1. (Learning Objective 1: Explain and differentiate between business organizations)
Hudson Signs, Inc., needs funds, and Alley Hudson, the president, has asked you to consider
investing in the business. Answer the following questions about the different ways that Hudson
might organize the business. Explain each answer.
a. What forms of organization will enable the owners of Hudson Signs, Inc., to limit their
risk of loss to the amounts they have invested in the business?
b. What form of business organization will give Alley Hudson the most freedom to manage the business as she wishes?
c. What form of organization will give creditors the maximum protection in the event that
Hudson Signs, Inc., fails and cannot pay its debts?
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