Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concerns the legal form of their business. Ann has tried for the past 2 years to get Jack to agree to incorporate. She believes that there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks that the business should remain a partnership forever. First, take Ann's side, and explain the positive side to incorporating the business. Next, take Jack's side, and state the advantages to remaining a partnership. Lastly, what information would you want you were asked to make the decision for Ann and if Jack?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ann and Jack have been partners for several years.
Their firm, A & J Tax Preparation, has been very
successful, as the pair agree on most business-related
questions. One disagreement, however, concerns the
legal form of their business. Ann has tried for the past
2 years to get Jack to agree to incorporate. She
believes that there is no downside to incorporating
and sees only benefits. Jack strongly disagrees; he
thinks that the business should remain a partnership
forever. First, take Ann's side, and explain the positive
side to incorporating the business. Next, take Jack's
side, and state the advantages to remaining a
partnership. Lastly, what information would you want
if you were asked to make the decision for Ann and
Jack?
Transcribed Image Text:Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concerns the legal form of their business. Ann has tried for the past 2 years to get Jack to agree to incorporate. She believes that there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks that the business should remain a partnership forever. First, take Ann's side, and explain the positive side to incorporating the business. Next, take Jack's side, and state the advantages to remaining a partnership. Lastly, what information would you want if you were asked to make the decision for Ann and Jack?
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