Why
is it important for entrepreneur to determine the legal form of
business ownership? When choosing the legal form, what kind of tax
considerations to make?
What factors should an entrepreneur consider before choosing a
form of business ownership? Describe some key pros and cons of the
following business forms of ownership: a) Sole Proprietorship b)
Partnership c) Corporation d) Benefit Corp
As you have read in the text concerning the legal forms of
business ownership, the corporation avoids the concept of unlimited
liability. This means the owners (stockholders) are not liable for
the entire debts that the corporation incurs. The only amount of
money they can lose is the amount of their investment in the
company.
The Board-of-Directors and the Chief Executive Officer (CEO)
are the main group of people that are responsible for strategic
decisions that a corporation makes. This...
As you have read in the text concerning the legal forms of
business ownership, the corporation avoids the concept of unlimited
liability. This means the owners (stockholders) are not liable for
the entire debts that the corporation incurs. The only amount of
money they can lose is the amount of their investment in the
company.
The Board-of-Directors and the Chief Executive Officer (CEO)
are the main group of people that are responsible for strategic
decisions that a corporation makes. This...
What are at least four common types of legal entities that
business owners or board of directors can choose for their
organization?
Describe the major attributes of each and their major federal
tax benefits.
Which one would you select as a business owner for tax
purposes? Why?
A buy-sell agreement is a legal contract between owners of a
business. It does not require the purchase of life insurance.
However, many times the owners do choose to purchase life
insurance. What is the advantage of purchasing life insurance in a
buy-sell arrangement
A business owner said: “There is an inverse relationship between control and the size of an entity…why would I want my business to grow?”. Explain how the level of control held by a business owner(s) usually decreases as a business grows in size.