Week 6-2 Case Study Homework - Summary I hole-m Questions...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Summary I hole-m Questions Your Answers Gonect Answers 1. Because there are multiple people interested in creating a business 0 Sole organization, the fraternity brothers cannot form which of the proprietorship following? I SI'IDW explanation 2. Suppose the fraternity brothers are considering forming a 0 As partners they partnership. What would be one majordisadyantage of this option? would be personally liable for the firm‘s debts. 3. Suppose that the fraternity brothers decide they indeed want to form 0 general a partnership. If all the partners agree that they want to share the partnership management responsibilities and profits equally and accept equal personal liability, they should form a I SI'IDW explanation 4. Suppose that instead of a partnership, the brothers decide to 0 It is easy to raise considera corporation. Which of the following is an advantage of a capital by issuing corporation that they might find tempting? stock. Summary 5. What is one major disadvantage of a corporation that the fraternity 0 Corporate income brothers might face should they decide to incorporate? is taxed twice. I SI'I'EMI' explanatim 6. Suppose the fraternity brothers want to combine the tax advantages 0 Limited liability and management flexibility of a partnership with the limited liability of a company corporation. What type of business organization should they form? I SI'I'EMI' explanatim T. Ultimately, the fraternity brothers decide to form a limited liability o H] company {LLGL Under this form of business organization, what is the magnitude of liability each partner would face? I- show explanatim Concept Check $2D,flfli} Gonect Answers _— 1. SUPPOSE TOI'I‘I and MS brother, Ridley, decide to create a lawn care a general business. Eloth agree to share control of the business, work the same partnership amount, and split the profits equally. Tom and Ridley created a Summary I “rm 2. A cooperative is . an organization consisting of individuals who join together to gain an advantage in the market 3. In a limited partnership, no liability beyond 0 at least one the capital they invested. limited partner BSSUITIES I show explanation 4. Which of the following is not an advantage of a sole pmpn‘etorship'? o The sole proprietor cannot be sued. I» showexpla'ia‘tion 5. Typically, when one partner in a four-person partnership dies, 9 the partners the partnership . equally split up dissoh-‘es the deceased partner's share in the company 6. Qualification refers to a process in which a an LLC gets a hurinncr [Erma 4 Bummay' B. Qualification refers to a process in which a an LLC getsa business license in each additional state in which the business plans to p Smfl _ operate ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern