Please provide the answer in 250 words. Thank you so much for helping!
In the discussion forum, you are expected to participate often and engage in deep levels of discourse. Please post your initial response by Sunday evening and continue to participate throughout the unit. You are required to post an initial response to the question/issue presented in the Forum and then respond to at least 3 of your classmates initial posts. You should also respond to anyone who has responded to you. This week's discussion is based on the following scenario. Read the scenario and answer both questions in the Discussion Assignment forum Scenario: Sports Memorabilia Store Farah and David decide to form a sports memorabilia retail partnership. They have known each other since business graduate school and have always worked well together on various projects. The business is doing well but cash flow is very tight. Farah takes several calls from vendors asking for payment. He believed David had been paying the bills. When he asks about this. David admits to embezzling from the partnership What liability does Farah face as a result of the theft Are you for or against a partnership? Please explain. Your Discussion should be a minimum of 250 words in length and not more than 450 words. Please include a word count. Following the APA standard, use references and in-text citations for the textbook and any other sources. CONCEPTS IN PRACTICE Sports Memorabilia Store Farah and David decide to form a sports memorabilia retail partnership. They have known each other since business graduate school and have always worked well together on various projects. The business is doing well but cash flow is very tight. Farah takes several calls from vendors asking for payment. He believed David had been paying the bills. When he asks about this, David admits to embezzling from the partnership. What liability does Farah face as a result of the theft? Table 15.1 summarizes some of the main advantages and disadvantages of the partnership form of business organization. Advantages and Disadvantages of Forming a Partnership Potential Advantages Potential Disadvantages Table 15.1 summarizes some of the main advantages and disadvantages of the partnership form of business organization. Advantages and Disadvantages of Forming a Partnership Potential Advantages Potential Disadvantages No taxation at the partnership level Ease and lower cost of formation Combined skills and financial resources Flexibility in managing and running the business Easily changed business structure Informality Difficulty of ownership transfer Relative lack of oversight/regulation Number of partners needed Taxation subject to individual's tax rate Limited life Unlimited liability Mutual agency and potential for partnership disagreements Limited ability to raise capital . . Table 15.1 Types of Partnerships A general partnership is an association in which each partner is personally liable to the partnership's creditors if the partnership has insufficient assets to pay its creditors. These partners are often referred to as general partners. A limited partnership (LP) is an association in which at least one partner is a general partner but the remaining partners can be limited partners, which means they are liable only for their own investment in the firm if the partnership cannot pay its creditors. Thus, their personal assets are not at risk. Finally, the third type is a limited liability partnership (LLP), which provides all partners with limited personal liability against another partner's obligations. Limited liability is a form of legal liability in which a partner's obligation to creditors is limited to his or her capital contributions to the firm. These types of partnerships include "LLP" or partnership in their names and are usually formed by professional groups such as lawyers and accountants. Each partner is at risk however, for his or her own negligence and wrongdoing as well as the negligence and wrongdoing of those who are under the partners' control or direction. Table 15.2 summarizes the advantages and disadvantages of different types of partnerships. Advantages and Disadvantages of Types of Partnerships Type of partnership Advantages Disadvantages General partnership Business is simple to form All partners have personal liability by professional groups such as lawyers and accountants. Each partner is at risk however, for his or her own negligence and wrongdoing as well as the negligence and wrongdoing of those who are under the partners' control or direction. Table 15.2 summarizes the advantages and disadvantages of different types of partnerships. Advantages and Disadvantages of Types of Partnerships Type of partnership Advantages Disadvantages General partnership Business is simple to form Limited partnership (LP) Limited partners have limited liability All partners have personal liability General partners are personally liable Limited liability partnership (LLP) Partners are protected from other partners malpractice Some partners remain personally liable Table 15.2
