Waldo is planning to start a clothing store helping big and tall men blend in with the crowd. Explain to Waldo the advantages and disadvantages of a corporation in comparison to a sole proprietorship or partnership.
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Waldo is planning to start a clothing store helping big and tall men blend in with the crowd. Explain to Waldo the advantages and disadvantages of a corporation in comparison to a sole proprietorship or
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- Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes. Their business should be classified as a. corporation. b. sole proprietorship. c. partnership. d. none of the above.Joe is interested in purchasing a café in Hillcrest, primarily catering to the student market. Assume that Joe’s parents are likely to invest in the business and may play a management role. Describe the major characteristics, as well as listing the advantages and disadvantages, of any three forms of business structure appropriate to carrying on this business.Brianna and Britney are two sisters opening a clothing store with no other competition within the area. Both Brianna and Britney believe they will gain great profits in the first year, providing them with the ability to sell franchises in the future. They can start the business as a partnership, however it is believed that cash flow will be an issue as they expand in the future, thus they feel as though a corporate form of the business is best. Assume the corporate is formed and it sets a par value for its shares low and issue common stock for a price above par. 1. State what is this amount above par called? 2. Determine if this amount will be considered a gain, income, or profit? State reasons for your answers.
- Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice . If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answerIn your everyday consumer interactions, would you rather do business with a sole proprietorship or a corporation? Why?While sole proprietorships and corporations are the most popular forms of business organization, the limited liability company (LLC) is a close third. Limited liability companies are treated like partnerships in the majority of situations. Why do you think LLCs are gaining in popularity?
- Brianna and Britney are two sisters opening a clothing store with no other competition within the area. Both Brianna and Britney believe they will gain great profits in the first year, providing them with the ability to sell franchises in the future. They can start the business as a partnership, however it is believed that cash flow will be an issue as they expand in the future, thus they feel as though a corporate form of the business is best. What are five advantages of choosing the corporate form of a business. Do you suggest that they issue preferred or common stock? State reasons for your answer.Sebastian, Wyatt, and Mathew are close friends who graduated with master's degrees in accounting from an Ivy League institution. Instead of seeking employment, the friends decided to create their own accounting business. At their initial meeting, the friends could not decide whether to form a partnership or a limited liability company. You were approached as a company law student for advice on the type of business that would be appropriate for the friends. (a) What kind of business would you suggest to the friends? Justify your recommendation. Your reasoning should not be more than 500 words and should cover the following points: the requirement for the registration of the business in Jamaica, the advantages and disadvantages of the business type and information on the dissolution of the business. (b) Assume the friends opted to create a partnership, and has asked for your assistance in creating a Partnership deed; create a partnership deed that…Valeri is opening a hair salon, but she does not know whatbusiness form it should take. What can you tell her aboutthe advantages and disadvantages of operating as a soleproprietorship versus a corporation?
- Alyssa and Becky are suddenly successful candy makers and have been advised to organize their business to continue their success. They both want to avoid liability and be taxed as little as possible. Alyssa and Becky have heard about the limited liability company and corporations and have sought your advice regarding which form would better achieve their goals and how to organize their business. (a) To create and organize the business.?(b) How can Alyssa and Becky avoid being labeled as another business form? (c) What challenges might exist for creating their desired form?What advice will you give to someone who has limited capital but possesses all the necessary skills to start a planned business? A)Build a sole proprietorship business and source funding from a bank or other personal connections. B)Set up a partnership business and teach them the necessary skills to make the business work C)Organize a corporation since it is the easiest form of business since it requires less paperwork D)Make an LLC and inviting only your closest friends to invest in your business_______ During college, Elyssa Wood earned extra moneyby using her culinary skills to cater specialparties. After graduation, she decided to turn herpart-time job into a full-time business that sheplans to expand in the future. In the meantime,she wants to maintain complete control ofthe business. She will most likely organize thebusiness as aa. master limited partnership.b. corporation.c. general partnership.d. sole proprietorship.e. cooperative.