36. Your friend Lucas plans to open a motorcycle dealership and repair facility. He recently won $1,000,000
Question:
36. Your friend Lucas plans to open a motorcycle dealership and repair facility. He recently won $1,000,000 in a state lottery, quit his job, and is developing plans for deploying the newfound wealth into this venture. He already identified a parcel of land that he intends to purchase for the construction of the facility once he obtains an additional $3,000,000 of capital that he plans to raise from a handful of additional investors. Richard requested your advice regarding what type of entity he should utilize. Please identify two possible choices of entity and briefly list the major advantages and disadvantages of both alternatives.
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman