Which of the following would lead Kara to choose a sole proprietorship organization for her business
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Kara wants to build a business. She has plenty of capital and potential investors and partners. She wants to avoid the burden of sole liability for her business and wants to be able to close the business when she is no longer interested in it. Which of the following would lead Kara to choose a sole proprietorship organization for her business?
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Some of the major advantages of a sole proprietorship include:
1. Easy formation and winding up
2. Prompt decisions
3. Better control and secrecy
4. Fewer regulations
5. Ease of operations
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- Brenden and carmen are considering forming a partnership. they need your help as to how income and lossee should be divided in their partnership.What factors should be considered in determining the division of net income or losses?A partnership agreement should include all of the following EXCEPT: (A) An indication of each partner's percentage of profits or losses. (B) The amount of cash or property which has been contributed by each of the partners. (C) How reimbursements for out-of-pocket expenses will be handled. (D) The amount of each partner's salary that they will receive each year.1. Setting Up a Business Your friend, Olivia Graves, is going to start her own chocolate shop, called Chocolate-By-Design. Olivia is an expert candy maker and one of the city's top pastry chefs. Olivia has come to you for advice on what type of business Chocolate-By-Design should be-a sole proprietorship, partner- ship, or corporation. Create a report comparing the three different types of businesses, along with your recommendation for Chocolate-By-Design's business structure.
- Suppose a partnership is set up and operated without a formal partnership agreement. What problems might arise? ExplainYou have been invited to become a member of a partnership. What are five of the considerations you need to assess in making a decision whether to join the partnership and whether to become a general or limited partner?Why would someone put up a sole proprietorship? All options are correct To take control of all the aspects of the business To enjoy all profits that can be made from the business To make all decisions regarding the business
- You have incorporated a business which a pack of Tommies now seeks to take over. You oppose this and also feel that the Tommies should use their "education" and start their own business instead of taking the easy way by trying to acquire your successful business. However, your shareholders have been offered a higher than market value for their shares by the aggressor. Briefly describe your duties and responsibilities as an officer/board member to your shareholders. 2 Based upon the price offered by the Tommie group, your shareholders appear to be in favor of this take-over. Identify and describe (6) methods that would enable you to effectively resist the take-over.4) The decision-making process in a partnership tends to be faster when A) there are numerous partners who all want to solely control the management of the 4) business. B) there are few partners and all of them are involved in the day-to-day activities of the business. C) the partnership is a domestic corporation with numerous partners. D) there are numerous partners, and the firm has issued public stock. E) the partnership is a foreign corporation that conducts its business outside the state in which it was incorporated.In order to qualify as a partnership, how many participants must hold a partnership interest? (A) Two or more with an interest of more than 5%. (B) One partner with more than a 50% interest. (C) Two or more with any amount of interest. (D) Three or more.
- TRUE OR FALSE A Partnership is a form of business in which two or more people operate for the common goal of making a profit.Johnny and Ash have not yet incorporated their new company. However, each has already invested $50 000 into the business by depositing the money into Johnny’s business account. Johnny is negotiating the purchase of a small factory in his own name, and is purchasing the equipment and materials he will need to start manufacturing Organicola. Ash has also started spending 2 or 3 hours every evening writing a business plan and a marketing plan. (1) Have Johnny and Ash formed a partnership? If so, what are the legal consequences?It is easy to transfer ownership of shares of corporations from one person to another. Select one: True False