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Business Entities—Partnerships and Corporations

Assume Target Corporation is involved in a major lawsuit and the probable damages are estimated to be $2,000,000.

A. Describe the effects damage estimates would have on the financial statements of a corporation and a partnership.

B. How do disclosure requirements differ from a corporation to a partnership and what information is required?

C. Are the shareholders at risk for any personal liability with the company set up as a corporation? Defend your response.

D. If Target Corporation was set up as a partnership, would the partners be at risk for personal liability? Defend your response.

Answer 1

Solution:-