Answer each of the several questions in detail . Word count for each questions must be a minimum of 150 words each answer.
1. As you read and research the materials this week, pay close attention to the following issues:
- Characteristics (of control by the owner/s)
- Ease of formation (paperwork, registration, special tax ID, etc.)
- Taxes (separate tax return and accounting matters)
- Liability (protecting the owner/s from liability)
- Sale and or buyout (of the business to another, or co-owner)
- Reach (of business around the country or the world)
Of the bulleted aspects, which one or two are the most important, or should hold the most weight, in your view? Why?
2. So what are the risks that we want to manage for and how does what the business does–the type of business it is–play into that?
3.there is some dissatisfaction with SOX, how costly it has been to implement over the last several years and whether it has really done any good in terms of better managed businesses. Are businesses better now as a result?
4.put another way: which form/s or entity type/s protect us (or at least our investment) against ourselves?
5.So what does the LLC (Limited Liability Corporation) type do, or how is it different from the “C-type” corporation? Why one over the other?
6. Imagine that a friend tells you about their idea to start a sports therapy clinic which they plan to operate as a sole proprietorship.
Remember there is no one right answer to which form is best, and as the clinic grows, it can change its form. This is not entirely uncommon. However, while there might not be one right answer, there may be a worse answer.
This is a critical thinking/decision-making skill technique. Our minds, by default, go to the first and most attractive (for whatever reason) answer to a decision point. One way to check the answer, your “first choice,” is to ask yourself, “What if I’m wrong?” or “How might this be the wrong choice?” This exercise takes you on that kind of quest by asking not “What do I want?” but “What don’t I want?”
What benefits and risks would you advise your friend to be aware of?
7. what are the lawsuit risks here? Can you think of some besides, that is, she is having them do “core strengthening exercises” and they sprain something? But what else could go wrong? Does it matter if it is at her home or should she rent a space. Does it matter how much she makes doing this, as well? Why does how much matter?
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