which type of organization should be formed. Jackie and Susie are starting an accounting firm. They are deciding between a general partnership and a limited liability partnership. It is crucial to Jackie that she has limited liability and is not personally liable if Susie is negligent.

A plastic surgeon wants to start a new private clinic. Because of the possible malpractice involved, this doctor is concerned about losing his personal wealth as a result of a lawsuit against his business. If he will be the major owner of the business, how should he set up the organization? Multiple Choice O A sole proprietorship A limited liability corporation A limited liability partnership

If a family company was established with both Robbie and Dawnnie each owning the same number of shares, would any dividends paid to the couple be franked or unfranked? Explain.   On the basis that Robbie will still receive a salary and does not require any further income, could a dividend be paid only to Dawnnie but not to Robbie?

Choose the response that correctly completes the following sentence about an individual partner's outside basis in a partnership. A partner's outside basis:    Can be less than zero.  Does not change as long as the partner maintains their partnership interest.  Is used to apply the basis limitation to losses from a partnership.  Must be tracked by the partnership.

A professional corporation form of organization: Multiple Choice may ultimately decrease liability of all partners of a CPA firm. has similar liability requirements to that of a limited liability company form. eliminates personal liability for selected partners.

For each of the following situations, indicate whether a CPA who is a partner in the one office CPA firm is "Independent" with respect to the client, by choosing "yes" or "no." Individual CPA's situation The CPA's nondependent child owns an immaterial direct financial interest in the client. b. The CPA's spouse owns an immaterial direct financial interest in the client. c. The CPA's brother is the controller of the client. d. The CPA's father is a salesman for the client. e. The CPA's nondependent mother owns an immaterial direct financial interest in the client. f. The CPA's five year old son who lives with her, was given a gift by a friend of 20 shares of stock worth, in total $100, in an audit client of the CPA. The CPA owns an immaterial amount of stock in a firm audit client, she does not work on that audit engagement. h. The CPA owns an immaterial amount of stock in a firm audit client, she works on that audit engagement. 9- i. A CPA's father owns a material investment in a firm…

What options does a group of people have when forming a business? Why might a partnership not be the best form of business organization? What other options might they have?

Which of the following statements is most true? a. The liability for other partners’ wrong doings is limited to the amount a particular partner has invested in the partnership.   b. Partnerships are formed in accordance with specific guidelines that include the filing of a formal written agreement to the government.   c. A fast growing firm would be more probable to establish a partnership as its business form than would a slow growing firm.   d.Corporations can easier attract investors than those of the partnership and sole proprietor businesses.

which type of organization should be formed. Rob and Bran want to form a snow removal business. They are deciding between a general partnership and a limited liability company. Bran says it is important that the two have limited liability and do not pay corporate income taxes.

Julie contributes, as part of her initial investment, accounts receivable with an allowance for doubtful accounts. Which of the following reflects a proper treatment? O The accounts receivable and allowance should not be recorded on the books of the partnership because a partner must invest cash in the business. O The balance of the accounts receivable account should be recorded on the books of the partnership at its net realizable value. O The allowance account may be set up on the books of the partnership because it relates to the existing accounts that are being contributed. O The allowance account should not be recorded in the books of the partnership.