Research shows that Mr. Jones is better off forming an S-corporation opposed to a partnership. 26 U.S. Code 1361 states that an S-corporation is a company that operates domestically within the United States as well as the state in which the Articles of Incorporation are filed. It is more beneficial to be a domestic corporation because home states offer opportunities to reinstate active status to corporations who lapse in registration and taxes. If Mr. Jones fails to pay his annual taxes on time, his S-corporation status can be reinstated after he squares away what he owes within a reasonable period of time. S-corporations are allowed to distribute one kind of stock, but they are limited to having 100 shareholders or less. Mr. Jones is eligible to start his used car dealership as an S-corporation because he is a resident…
In the Corn Products Refining Co. case, the company had purchased corn futures in order to ensure that the corn needed for operations could be obtained in times of shortage or raising prices, without the need to worry about storage capacity limitations. The company reported the gain or loss on the futures as ordinary income and losses in 1940 and 1942, however the company later argued that the futures should be classified as a capital asset, subjecting the gain and losses incurred to Section 117 (Section 1211). The company looked to justify this shift in treatment by stating that the purchase and sale of these futures was a separate and distinct activity from the manufacturing operations of the firm, rather than hedges for the business. The…
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change ~ Charles Darwin.…
Grant Madill worked in a company called Potter & Associates for several years. He started dating a coworker named Jane Barry, who he eventually married. However, in the company’s policy the company does not prohibit dating coworkers, but it does have a policy forbidding married couples from both being employed by the organization. Since Grant married Jane, he clearly breached and violated the company’s policy. The policy specifically states that, if two coworkers at Potter decide to marry, then the less senior of the two will have resign. Therefore under this policy, the management of Potter expected Grant to resign when he and Jane got married, as he had less seniority than Jane. Grant did not want and refused to resign, thereafter being…
(Facts) The State of Georgia has enacted a law requiring contoured rear-fender mud flaps on all trucks and trailers operating within Georgia. Thirty-five other states allow straight mud flaps and Florida requires straight mud flaps.…
In order to determine the integrity of the recruiter and the CEO, we first need to understand what integrity is. The term integrity is used in the business literature to describe different leadership traits. David Bauman highlights an example of integrity's multifaceted nature provided by Bill George who is one of the most influential practitioner/writers on leadership today (Bauman, 2013). In his book Authentic Leadership George writes,…
Landye Bennett Blumstein LLP is a law firm that is located in Anchorage, Alaska. They are comprised of bankruptcy attorneys and more. Landye Bennett Blumstein LLP has been a legend since 1955. Their areas of practice include construction defect litigation, business, finance, and tax law, real estate development and transactions, business litigation, estate planning, trusts, wills, and probate, and more. Landye Bennett Blumstein LLP has won the 2012 Top Ranked Law Firms award as seen in Fortune…
Emens & Wolper Law Firm, LPA is a law firm that is located in Columbus, Ohio. Their experienced legal services include family business, oil and gas, estate planning, real estate, business succession planning, corporations and LLCs, and more. Their other areas of practice include purchase and sale of businesses, litigation assistance, probate, water, coal, sand, gravel, asset protection, and rights-of-way and pipeline easement issues. Emens & Wolper Law Firm, LPA aims to deliver the finest legal counsel possible.…
Strategic Recruitment is critical to the success of an organization in meeting its goals and mission because the organization needs people that can think out of the box and grasp concepts that are different from the normal. An organization is only as successful as it is able to keep up with change. By bring in strategic and aggressive people it allows the organization to bring in new and fresh ideas to motivate the current staff that maybe stale with confident from tenure.…
Cloon Law Firm is a law firm that is located in Leawood, Kansas. Their areas of practice include car accidents, medical device litigation, medical malpractice, motorcycle accidents, nursing home neglect and abuse, truck accidents, and wrongful death. Principal attorney Bryson Cloon has been the 2012 Top 1% Trial Counsel in the area of Medical Malpractice. Bryson Cloon has been rated by Super Lawyers.…
Enron senior management gets a failing grade on the truth and disclosure and a passing grade on arrogance and greed. For Fifteen years Enron was a paper tiger with few questions ever asked concerning its earnings profitability or business practices. The deceit and deception by Enron management seems to be the environment of a divisive marketing campaign that Kenneth Lay, Jeffery Skilling and Andrew Fastow hide while touting Enron. In reality Enron was one of the greatest Ponzi schemes to date, all hat and no horse. The management was superb at financial fraud and unparalleled at persuading the public and investors that they were respectable and legitimate. The money they stole bought a lot of respect and they spent freely on image and luxury in proving Enron was for real…
The external financing needs under three scenarios are summarized below. In 1983, the company had no external financing needs, as it just raised $400 million in March. From 1984 to 1987, the financing needs kept increasing, as the company tried to expand. After that, there was no external financing need as the earnings are in good levels, except in the case of unfavorable situation where it still needs $270.78 million in 1988.…
Giaschi, C. J. (2010). “Margaret Elizabeth No.1” et al., (June 10, 1997). Retrieved July 2, 2010 from http://www.admiraltylaw.com/personalinjury.html…
1. The “crisis of confidence” on the public accounting profession was not something that happened overnight and it is not the fault of one group of people or individuals. The accounting profession is partly to blame for this crisis, as the necessary rules, regulations and guidelines were not in place to hold companies and accounting firms responsible for their actions. The lack of regulations also allowed companies to partake in misleading transactions. These transactions were perfectly legal at the time, just not necessarily ethical. Companies did not have to be 100% honest when sharing earning results and company structure with shareholders. Arthur Anderson & Co. was also to blame as they were the accountants for Enron. They were the ones with the expertise who should have known better and looked to fully explain and disclose what they knew. Anderson’s commitment is to the shareholders, not to their client and they needed to act in a way and present the statements fairly so that a user could make an informed decision and that the statements presented fairly. Enron is also to blame. They were focused on profits – which is not necessarily a bad thing, except for the fact that they were not forthright in how they were getting there.…
Latham and Watkins LLP, established in 1934, is the world's most noteworthy netting law office, with US$2.6 billion in yearly income, and is generally thought to be a standout amongst the most prestigious and beneficial law offices on the planet.…