Chapter 1 (page 19) 1. What is the most important difference between a corporation and all other organizational forms? 2. What does the phrase limited liability mean in a corporate context? 3. Which organizational forms give their owners limited liability? 4. What are the main advantages and disadvantages of organizing a firm as a corporation? 5. Explain the difference between an S corporation and a C corporation.
Chapter 1 (page 19) 1. What is the most important difference between a corporation and all other organizational forms? 2. What does the phrase limited liability mean in a corporate context? 3. Which organizational forms give their owners limited liability? 4. What are the main advantages and disadvantages of organizing a firm as a corporation? 5. Explain the difference between an S corporation and a C corporation.
Related questions
Bill, Dave, Courtney, and Kyle all plan to become owners of abusiness called Bob's Burgers: The percentages are broken out belowhow the company is going to be broken up.
ï· Bill, 50% ï· Dave, 20% ï· Courtney, 5% ï· Kyle, 25%
Dave has mapped out a business plan calling for modest sales andno or little profit in the first year, but once things catch on, heprojects considerable growth and profit potential as follows:
| Year | sales | Net Income |
| 1 | $1million | $0.00 |
| 2 | $5million | $500,000 |
| 3 | $15million | $2Million |
| 4 | $30million | $5million |
| 5 | $50million | $10Million |
1. Question what should they form and why ? Should they form apartnership, an S corporation, a C corporation, or some other typeof business entity. Please explain why.
2. How does each business form addresses owner concerns relatedto personal liability, return on investment, and tax costs relatedto compensation. Please explain as well for this such smallbussiness starting off. Thanks
