UNDERSTANDING BUSINESS W/ACCESS >C<
11th Edition
ISBN: 9781259697265
Author: Nickels
Publisher: MCG CUSTOM
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Question
Chapter 5.3, Problem 5.3BQ
Summary Introduction
To determine: Advantage and disadvantages of the limited liability companies.
Introduction:
The company where the liability of the owners are extended only up to the capital invested by them is known as the limited liability companies.
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Juan wants to be involved in business. He has plenty of capital to invest, but he does not want to be involved in management. He also does not want to worry about fluctuations in the market prices of debt and equity instruments. Which form of business would be best for Juan?
A. General partnership
B. Sole proprietorship
C. LLC
D. Corporation
Compare and contrast the (1) limited liability company (LLC) and (2) corporation forms of business organizations. If a person were to start their own business, which one of these forms would they choose? Why?
No plagiarism Please!
8. Explain the characteristics of sole proprietorships, analyze the advantages and disadvantages of organizing a business as a sole proprietorship, Explain the characteristics of partnerships analyze the advantages and disadvantages of partnerships. Compare and contrast the three forms of business organization.
Chapter 5 Solutions
UNDERSTANDING BUSINESS W/ACCESS >C<
Ch. 5.1 - Prob. 5.1AQCh. 5.1 - Prob. 5.1BQCh. 5.1 - Prob. 1TPCh. 5.1 - Prob. 2TPCh. 5.2 - Prob. 5.2AQCh. 5.2 - Prob. 1MEDCh. 5.2 - Prob. 3TPCh. 5.2 - Prob. 4TPCh. 5.3 - Prob. 5.3AQCh. 5.3 - Prob. 5.3BQ
Ch. 5.3 - Prob. 5TPCh. 5.3 - Prob. 6TPCh. 5.3 - Prob. 7TPCh. 5.3 - Prob. 8TPCh. 5.4 - Prob. 5.4AQCh. 5.5 - Prob. 5.5AQCh. 5.5 - Prob. 5.5BQCh. 5.5 - Prob. 5.5CQCh. 5.6 - Prob. 9TPCh. 5.6 - Prob. 10TPCh. 5.6 - Prob. 11TPCh. 5 - Prob. 1CTCh. 5 - Prob. 2CTCh. 5 - Prob. 3CTCh. 5 - Prob. 4CTCh. 5 - Prob. 1DWSCh. 5 - Prob. 2DWSCh. 5 - Prob. 3DWSCh. 5 - Prob. 4DWSCh. 5 - Prob. 5DWSCh. 5 - Prob. 1TITCh. 5 - Prob. 2TITCh. 5 - Prob. 1VCCh. 5 - Prob. 2VCCh. 5 - Prob. 3VC
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- Given is a doctor who is forming her own medical practice. She wants her practice to be flexible , simple to run , and free from required meetings , minutes or resolutions . Her goal is to blend the best characteristics of corporations , partnerships and sole proprietorships . What form of business ownership seems most in-line with Gwen’s goals ? A)C corporation B)cooperative C)joint venture D)limited liability company E)S corporationarrow_forwardEven though most states have similar requirements for LLC formation, specific state laws differ. However, there is an exception to this rule. Besides banks, what types of entities are NOT legally allowed to form an LLC? a) Personal loan lenders b) Insurance companies c) Tag agencies d) Government subcontractorsarrow_forwardWhich of the following is not true about legal forms of business? a. Facebook, Amazon etc can be best examples for corporate form of business b. There will be 2 or more partners in partnership business ownership c. Small tyloring shop in Nizwa Souq can be an example of Sole proprietorship d. All the business ownerships has unlimited liabilityarrow_forward
- Which is true with regards to the disadvantages of the major business organization? a. Corporations are subjected to lenient regulations as opposed to a partnership form of business b. Partnerships tend to have less organizational cost than corporation due to simpler structure c. Partnerships’ and corporations’ life is always extinguished when one of the partners or corporators die d. Unlimited liability concept always applies both to partnership and corporate form of businessarrow_forwardDiscuss the possibility that your startup might become a franchisor in the future. If your business succeeds and begins to grow, would your goods or services be suitable for franchisees? Draft a paragraph or plan a brief (three-minute) presentation explaining why you think your startup might or might not ultimately mature into an attractive franchising operation.arrow_forwardRazor, 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 partnershiparrow_forward
- Every organization is formed into an entity of some sort, and is usually done to protect individuals from liabilities connected with business operations. If you were starting your own business, which entity formation would you use--sole proprietorship, partnership, LLC, or corporation? Why? Which entity formation would you never use? Why?arrow_forward1. Dave and Earl decide to open a restaurant and operate the business as a corporation. At the directors’ initial meeting, the directors mayAnsweradopt articles of incorporation only.adopt bylaws only.choose a corporate name only.adopt articles of incorporation and bylaws and choose a corporate name.2.Pat goes to the Cosmic Runners Supply Store in Santa Cruz, California. The sales person shows Pat some running shoes and says, “In a race, these shoes will pick up the cosmic energy from the runners around you and channel it into your legs. This transfer of energy causes everyone with these shoes to run twice as fast as in normal shoes.” Yet in Pat’s next race, she finishes last; and then she sues the store and the sales person for common law fraud. What would be the likely result of such a lawsuit?Answera. Pat would win since the statement was not true.b. Pat would lose since her reliance on the statement was not justified as reasonable.c. Pat would win if she…arrow_forwardWhich of the following legal forms of business, (sole proprietorship, partnership, corporation), would be favored and why? Be sure to provide a short explanation. Example: (a) “Organizational requirements and costsis an advantage of the sole proprietorship. The business is formed simply by beginning to do business. Partnerships and corporations require a more formal organizational process since a number of owners are involved.” A. Organizational requirements and costs (done for you above) B. Liability of the owners C. The continuity of the business D. The transferability of ownership E. Management control & regulations F. The ability to raise capital G. Income taxes.arrow_forward
- Forming a partnership enables entrepreneurs to combine their skills and knowledge. What is another perk of a partnership? a) It offers the most entrepreneurial protection. b) There is someone to share the business debts with. c) There is a lot of government control involved. d) Employment laws need not be followed.arrow_forwardA corporation is not for everyone, and it could end up costing you more time and money than it's worth. Before becoming a corporation, you should be aware of these potential disadvantages?please mention elaborately?arrow_forwardCompare and contrast the (1) sole proprietorship and (2) partnership forms of business organizations. If a person were to start their own business, which of these 2 forms should they choose? Why?arrow_forward
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