Louise Layton plans to open Louise's Floral Designs. She is considering the various types of business...

Louise Layton plans to open Louise's Floral Designs. She is considering the various types of business organizations and wishes to organize her business with unlimited life and limited liability features. Which type of business organization will meet Louise's needs best?

A partnership would have an indefinite life.

The limited liability of a corporation would protect Louise's personal assets and provide an unlimited life to the business.

The limited liability of a proprietorship would protect Louise's personal assets.

A proprietorship would allow Louise to share ownership with a friend.

Solutions

Expert Solution

Sol:

Business with unlimited life and limited liability features will be B:

B. The limited liability of a corporation would protect Louise's personal assets and provide an unlimited life to the business.

A limited liability corporation (LLC) is a separate entity, like a corporation, that can legally conduct business and own assets. The LLC must have an operating agreement which regulates its business activities and the relationship among its owners / members. The important feature of the LLC is that all members obtain limited liability. A limited liability company protects its members from personal liability for the debts and actions of the business. The LLC is dissolved in the event of transfer of interest or death, unless members vote to continue the LLC give it an unlimited life to the business.

Therefore limited liability of a corporation will meet Louise's needs best.

Answer is B. The limited liability of a corporation would protect Louise's personal assets and provide an unlimited life to the business.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Kerry Donovan plans on opening Donovan’s Fashion Designs. She is considering the various types of business...

Kerry Donovan plans on opening Donovan’s Fashion Designs. She is considering the various types of business organizations and wishes to organize her business with unlimited life and limited liability features. Additionally, Kerry wants the option to raise additional equity easily in the future. Requirements: Which type of business organization will meet Kerry’s needs best? Give arguments to support your answer. Name two other types of business organization and explain each.

Your friend, Aisha, plans to open a parking garage business. Aisha states that she does not...

Your friend, Aisha, plans to open a parking garage business. Aisha states that she does not have time to develop and implement a system of internal controls. (a) Explain to Aisha the objectives of a system of internal control. (10 points) (b) Explain to Aisha at least 3 internal controls that she might consider implementing to protect her business against fraud. (15 points)

Describe the three types of organizational designs: rational, natural, and open systems. These three designs often...

Describe the three types of organizational designs: rational, natural, and open systems. These three designs often operate interdependently-explain how they are interdependent but also unique. This question is related to the study of organizations.

open a new small business like frozen pizza, describe 4 types of plans and develop each...

open a new small business like frozen pizza, describe 4 types of plans and develop each one for your products

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade...

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $16,770. The booth will be open 39 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $179 per package. She will continue to sell the existing product, EZRecords, which costs $105 per package. Ms. Ortega...

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade...

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $9,250. The booth will be open 25 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $177 per package. She will continue to sell the existing product, EZRecords, which costs $101 per package. Ms. Garcia...

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade...

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $14,570. The booth will be open 31 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $176 per package. She will continue to sell the existing product, EZRecords, which costs $103 per package. Ms. Ortega...

Nora plans to open Nora's Nursery, a plant sales and plant supplies outlet, and she plans...

Nora plans to open Nora's Nursery, a plant sales and plant supplies outlet, and she plans to hire Mike, Ryan and Christy. Nora will invest only her own money. She does not expect to make any profit for at least two years and to make almost no profit for the first three years, but she hopes to expand eventually. Which form of business organization would be most appropriate? What are the chief characteristics, advantages, and disadvantages of this form of...

Louise works in a foreign branch of her employer's business. She earned $5,000 per month throughout...

Louise works in a foreign branch of her employer's business. She earned $5,000 per month throughout the relevant period. Which of the following is correct? a.If Louise worked in the foreign branch from May 1, 2019 until October 31, 2020, she may exclude $40,000 from gross income in 2019 and exclude $50,000 in 2020. b.If Louise began work in the foreign country on May 1, 2019, she must work through November 30, 2020 in order to exclude $55,000 from gross...

A friend tells you that he plans to open a business in which he will entertain...

A friend tells you that he plans to open a business in which he will entertain children at birthday parties. He says he will offer a new entertainment in which he dresses up like a dinosaur, something many children love. What do you advise him about the possible future of his business? In your answer use the concepts of economies of scale, barriers to entry, and monopolistic competition.

Subjects

Question

Louise Layton plans to open​ Louise's Floral Designs. She is considering the various types of business...

Solutions

Expert Solution

Related Solutions

Louise Layton plans to open Louise's Floral Designs. She is considering the various types of business...