three different legal forms of business and all vary in levels of liability‚ ownership‚ and P&L control. An inventor who has developed a new product needs to determine the proper form of business to establish. The inventors’ situation is unique and narrows his choices of business types due to his lack of financing‚ business skills‚ and family. The three types of business he would have to research are sole proprietorship‚ partnerships‚ and corporations. Each type of business has advantages and disadvantages
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points: a. liabilities incurred by the business b. financing of the business c. input and involvement in the business 3. Outline the essay below. Thesis Statement (copy) There are many similarities as well as differences between the two‚ which include the liabilities incurred by the business‚ the financing of the business‚ as well as the input and involvement in the business Support/Reason One General partnership assumes unlimited liability whereas a limited partnership has an outline
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27e Chapter C9 Partnership Formation and Operation 1) Formation of a partnership requires legal documentation filed with the Secretary of State. Answer: FALSE Page Ref.: C:9-2 Objective: 1 2) A partner’s basis for his partnership interest can be negative. Answer: FALSE Page Ref.: C:9-5 Objective: 1 3) The holding period of a partnership interest acquired in exchange for a contributed capital asset begins on the date the partner transfers the asset to the partnership. Answer: FALSE Page
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countries. These legal forms of business include; • Sole Proprietorship • Partnership (General Partnership‚ Limited Partnership and Joint Venture) • Corporation (C Corporation and S Corporation) • Limited Liability Company (Private and Public) These legal forms have been derived according to their Source of the capital‚ Value of capital investment‚ Nature of ownership‚ Number of owners‚ Nature of liability and many other factors. Each legal form has its own advantages as well as
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Exam 1 1. Country A is extremely efficient in the mining of tin. However‚ its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage‚ Country A should: concentrate its production on tin and buy corn from an efficient producer. 2. Climate and terrain in several South American countries are conducive to growing coffee efficiently. While other countries can grow coffee‚ they are not as efficient and effective at coffee growing because of short seasons
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Objectives of structuring a capital venture fund. Limited Liability Investors would like to see their liability for their investment in the fund limited to the amount of their investment‚ as they will not be usually playing an active part in the management of the investments. Avoiding an additional level of tax The investors main requirement is to avoid tax payable once receiving a dividend and then again paying a tax when the investments are realized. Suitability to all kind of investors
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Form 1065 For calendar year 2011‚ or tax year beginning Department of the Treasury Internal Revenue Service A OMB No. 1545-0099 U.S. Return of Partnership Income ‚ ending . See separate instructions. Principal business activity Name of partnership D Employer identification number ROCK the Ages‚ LLC. B Principal product or service C Business code number Print or type. 711410 55-5555555 Number‚ street‚ and room or suite no. If a P.O. box‚ see the instructions. E Date business started
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Date 07/06/2015 To: P. Strami and Mable Bacon From: Allicia Hines Re: Business Formation of Potential Cardigan Home Store A partnership‚ sole proprietorship‚ and incorporation are three types of business ownership. (Miller 444) Sole proprietorships can be operated and owned by the same person. Then again‚ an entrepreneur may claim sole proprietorships; however they may acquire a supervisor to run the business daily routine. The sole proprietor tracks every profit made from the business and is responsible
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time off if they are ill. 3. Developing the business is also limited by the amount of capital personally available. 4. There is also the risk of unlimited liability‚ where the sole trader can be forced to sell personal assets to cover any business debts. What is a Partnership? Partnerships are businesses owned by two or more people. A contract called a deed of partnership is normally drawn up. This states the type of partnership it is‚ how much capital each party has contributed‚ and how profits
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form that will be beneficial to maximize the value of the firm. The owners must consider the size of the business‚ the taxation of the business‚ the liability of the owners and the ability to raise capital to finance the business (Parrino‚ Kidwell & Bates‚ 2012). The owners will then choose one of the 3 different forms: sole proprietorship‚ partnership or corporation. Sole Proprietorship Sole proprietorships are businesses that are owned by a single person. A sole proprietorship is the easiest
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