Organizational Forms

Assignment 3 To: Jim Baku & Scott Hanson From: xxxx Date: xxxxxxx 2012 RE: organisational Forms Jim and Scott, When fount your join restaurant thither ar a many social functions to consider. One of the most important things is should your venture be organized as a confederation or a mess. The first thing you should do it to look at the advantages and disadvantages of pair forms of backing organization. Partnerships: A partnership is an agreement between the ii of you, allowing you to combine your resources to r from each one a communal goal; opening and operating your restaurant. This would allow you two to carry on in charge of the restaurant and sh ar in the bread together. Now there are two forms or transmission line partnerships. The first is a General partnership; an important thing to think astir(predicate) is that you will be liable for all business debts and are held responsible for each others actions. dumb both or you would be active in xxiv hour period to day operations. Now a checker partnership, one or more(prenominal) partners invest in the business, but are not tortuous in the day to day precaution of the business. Now it apprize be worked out in a special(a) partnership for partners involved with management to receive a larger eject of the profit. Still with both forms of partnership, all partners are responsible for debts connected to the business.

Advantages * Low startup cost * tax advantages * Limited regulation * Ease of formation Disadvantages * unmeasured indebtedness * No name prot ection * Partners post levelheadedly ! lodge each other to debts * Authority divided among partners. Corporation: A limited corporation is a legal entity which is separate from the corporations members or shareholders. What this means is if a creditor has a legal select it goes against the company not its shareholders. The benefit is that no shareholder can be held personally liable for debts beyond their investment. Advantages: * Limited Liability * Small...If you sine qua non to get a full essay, lay out it on our website: OrderCustomPaper.com

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