Chapter 1, Problem 1QAP

Tristan is thinking about purchasing stock in a corporation. Specifically, Tristan has asked you to explain to him what the terms'membership' and'shareholdership' represent, as well as the many methods in which someone might become a member of the organization. He also wants you to clarify who would be qualified to become a member, as well as how many members a corporation is allowed to have. Finally, Tristan inquires as to how a person might become no longer a member of a corporation.

What is an important reason business owners choose the election for s corporation status.

The first step in forming a sole proprietorship is filing out the appropriate paperwork and paying the necessary filing fees with the secretary of state in the state where the business will operate. True false S corporations and closed corporations' earnings are exempt from federal and state income taxes based on a commitment to reinvest in local communities. True false

Jack is considering incorporating and asks for advice. Which of the following is not a major concern he should worry about? selection of the corporation's name   colors for his business logo   which state to incorporate his business   the number of stock shares he should authorize

Marty Byrd is debating setting up his new business venture as a corporation. He comes to you for advice. What would you tell him? Include at least 3 advangates and 1 disadvantage to incorporating

Robert is the CEO of a closely held business, and he would like to provide life insurance to all of his employees as a fringe benefit. Robert would like life insurance that permits him to pay the premium, so long as it is deductible as a business expense and permits the employee to designate the beneficiary of the policy. Which one of the following is the most appropriate insurance product for Robert's situation? A)Robert should enter into an entity buy-sell agreement with each employee using cash value life insurance.   B)Robert should provide group term life insurance.   C)Robert should provide key person life insurance.   D)Robert should provide split-dollar life insurance.

Candace is considering incorporating her photography business and knows that there are many drawbacks, except ________.   Question 3 options:   A)  high costs of incorporation   B)  double taxation   C)  complex legal requirements   D)  unlimited liability   E)  heavy regulation

Three ladies decide to go into business publishing cookbooks. They form a corporation, having been told that the corporate form of ownership carries limited liability. They decide not to purchase any form of liability insurance for the corporation because their loss in the event of an uninsured liability loss will be limited to the amount of their initial investment. Is there a fallacy in their logic?

What are the advantages and disadvantages of becoming a franchisee? Should a person considering going into business the first time consider a franchise?