Chapters 16 17 18 - Chapters 16-17-18 Business Associations...

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1. Identify the advantages and disadvantages of the following forms of business, in particular with regard to liability of the owners: ± sole proprietorship ± partnership ± limited partnership ± limited liability company ± corporation ± "S" corporation 2. Define Partnership. 3. Distinguish between a partner's interest in the firm, and a partner's interest in partnership property 4. Identify the provisions that should be included in an LLC operating agreement. 5. Discuss the management structure of an LLC 6. Identify the consequences of improper incorporation. 7. List the factors that will cause a court to disregard a corporate entity 8. Define the duties of officers and directors. 9. Explain when directors will be entitled to protection by the business judgment rule. 10. Identify the rights of shareholders. LO 1: Identify the advantages and disadvantages of the different forms of business See Exhibit 18-3 on page 469 of the text. The three factors that most people consider when choosing a form of business are method of creation (or more particularly ease of creation), taxation and liability. Note that a corporation is more difficult to form than a partnership, and also results in a double taxation. However, the advantage of limited liability generally outweighs those disadvantages. Also, note that there are “hybrid”
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This note was uploaded on 08/12/2011 for the course ECON 212 taught by Professor Shwritzer during the Spring '11 term at Alabama A&M University.

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Chapters 16 17 18 - Chapters 16-17-18 Business Associations...

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