Limited liability

would recommend that Arcadia Sports create their business as either a Partnership or a Limited Liability Company. A Limited Liability Partnership would be the best option because they will have one general partner - Josh who manages the business, and one limited partner - Jeb who is the financial backbone of the company and just an investor in the business. However, if Arcadia Sports were to be a limited liability partnership, Jeb is not personally liable for Jane's injury since he does not…

Free Enterprise System Free enterprise is a system where the government has very few limitations on business activities and ownership. In this system this government has minimal ownership of an enterprise. The U.S. economic system of free enterprise operates according to five main parts: the freedom to choose our businesses, the right to private property, the profit motive, competition, and consumer sovereignty. In free enterprise you have a right to own and do all of the main parts the the…

for corporations that are not yet created. This liability can only be lifted with a novation, which is an agreement between the corporation and the third party to release a promoter. Since no corporation was created, the novation process cannot occur and Hayes will be held liable for the contract. Hayes was forced to pay for the van because promoters can be held liable for the contracts they made for corporations that are not yet created. This liability can only be lifted with a novation, which…

2.1 DEFINITION Coyle (2000) defined Mergers and Acquisition (M&A) occur when two or more companies joint together all or part of their operations. The differences between mergers and acquisition relate mainly to the relative size, management control and ownership of the combined business. Mergers is defined as two separate companies pooling their resources into a single entity and become common shareholders. The shareholders of pre-merger companies have a shared in the ownership of the merged…

formations. If someone wants to develop a business, they can form a sole proprietorship, partnership, limited liability company, or a corporation. A sole proprietorship refers to a business that is owned and managed by one person. A partnership is a business where two people agree to be co-owners of a business and general participate in management and share the incoming profits. A limited liability company is relatively new in terms of business formations. It is a company that is a combination…

proprietorship fully rests upon the owner. The income of the Sole proprietorship is considered as the income of the business owner and tax applied to it is not the corporate income tax, but the personal income tax that ranges from 0% - 20%. Limited Liability…

may register their business as a corporation, limited liability company (LLC), professional service or a nonprofit association. Although, a business owner may open a sole-proprietorship or a partnership these choices will not be considered because they do not provide limited liability protection for the business owner. Limited liability is protection to the business owner just like a corporation. Business owners are protected from personal liability for business debts and claims. Meaning, it…

There is something to be said about with whom a person goes into business. In the 1980’s, my brother and two friends formed a partnership doing surveying in Colorado. Shortly after getting established, the two friends ousted my brother and took all of the money. There was an IRS audit in which a gain was determined, and my brother was included in the assessment. He quietly paid it, then one day, he received all of his money back; his “friends” paid the assessment not knowing it was paid. We…

as partnership. They both have sharing ratio for profits/losses. It depends on the capital contribution or they may decides equally or any ratio. Say 1:1 which is equally, 1:2 etc. In any losses both will be liable for it. 3. Limited Liability Company:- The Limited Liability Company, also…

In 2002 the introduction of the concept of single member company is to facilitate sole proprietorship to get corporate status, giving them certain privileges. Single Member Company: It is a company which is formed by a single individual, limited by shares with one member. It is a subclass of a private company. In SMC there is one owner and also a single director which is owner. They required auditor under role of 1984. The secretary can be a member other than the secretary. They have various…