1. Leland and Baker are establishing a new restaurant and discussing whether to organize as a partnership...

Question:

1. Leland and Baker are establishing a new restaurant and discussing whether to organize as a or a What are some of the most important characteristics of these two types of organizations that they should weigh in making the decision?
2. Leland and Baker are considering organizing as a Subchapter S What are the advantages and disadvantages they should consider?
3. Leland and Baker decide to form a regular for conducting their restaurant business. They are considering whether to issue preferred stock or to borrow funds on a long-term basis. Suggest some factors they should consider. How can they make the preferred stock more attractive to investors?
4. A group of individuals is planning to form a Explain in general terms the usual steps necessary to do this.
5. Why should the management of a be concerned about the realistic valuation of assets transferred to the firm?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...