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ACC220_WK2_Ckpt_Prop_Part_Corp - other side of town Two...

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ACC220 – Week 2 – Checkpoint: Proprietorships, Partnerships, & Corporations A young woman, Doris Belle Ream, was a whiz at baking. Friends and family raved about her cakes and cookies. Many people said, “Doris, you should open your own store! People will flock to your door to buy your delicious bake goods.” So Doris decided to start her own company, Dosie Belle’s Bake Shop , making her business a sole proprietorship . The business made a profit the first year and Doris decided to ask her daughter, Connie, to become her partner. Connie agreed and bought into the company for $10,000 which escalated the company to the level of a partnership . Some three years down the road, the girls decide to open an additional location on the
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Unformatted text preview: other side of town. Two years later, they offer franchises and there are Dosie Belle’s Bake Shops springing up all over the U.S. Of course, before this happens, Dosie Belle’s becomes a corporation and later, a limited liability company (LLC). Doris and Connie chose the LLC as opposed to the S corporation due to the difference in tax laws governing both types of companies. In the eighth business year, due to the ever increasing number of franchises, Doris and Connie felt it was time to offer stock on the public exchange and became Dosie Belle’s ™ JSC. (joint stock company ) In their tenth year, they break out the champagne and go on an awesome 28 day cruise around the world. They deserve it! ACC220...
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