FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Richard has operated his business as a sole proprietor for several years. Now, however, he is worried about personal exposure to business debts. He comes

Richard has operated his business as a sole proprietor for several years. Now, however, he is worried about personal exposure to business debts. He comes to you for advice. What form of business organization would you not recommend to Richard?
a. An LLC
b. A limited partnership
c. An S corporation
d. A corporation

Step by Step Solution

★★★★★

3.38 Rating (145 Votes )

There are 3 Steps involved in it

Step: 1

Question Response Correct answer b A limited Partnership Explanat... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2015

Income Tax Fundamentals 2015

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

33rd Edition

9781305177772, 128543952X, 1305177770, 978-1285439525

More Books

Students also viewed these Finance questions

Question

★★★★★
The final project for this course is the creation of a memorandum with an appendix of supporting IRS forms and schedules . Working as an accounting associate in a financial organization requires the...

Answered: 1 week ago

Question

★★★★★
Steve Miller ( 45 ) and Brenda Miller ( 45 ) are a married couple with two children Adam 12 and daughter Amy 8 ) . Steve is self - employed electrical contractor and earns $ 125,000 after expenses...

Answered: 1 week ago

Question

★★★★★
What form does a self-employed sole proprietor usually use to report income and expenses from business? a. Schedule C b. Schedule D c. Schedule A, Miscellaneous Itemized Deductions d. Form 2106,...

Answered: 1 week ago

Question

★★★★★
The inequality describes the range of monthly average temperatures T in degrees Fahrenheit at a certain location. (a) Solve the inequality. (b) If the high and low monthly average temperatures...

Answered: 1 week ago

Question

★★★★★
Make up an example, as described in Problem 54, with 20 possible investments. However, do it so that the ratios of NPV to cash requirement are in a very tight range, from 3.0 to 3.2. Then use Solver...

Answered: 1 week ago

Question

★★★★★
Member ABC has a weight of 5 lb and is attached to a pin support at B. A 1.5-lb sphere D strikes end C of member ABC with a vertical velocity v1 of 9 ft/s. Knowing g that L = 30 in. and that the...

Answered: 1 week ago

Question

★★★★★
Plates are produced at a certain factory department in dozens. Assume that the probability of a plate being nondefective is p, while the probability of a defective plate is q = 1 p. Let X be the...

Answered: 1 week ago

Question

★★★★★
Your company is considering deploying a chatbot, a virtual customer assistant, to initially handle customer service calls and, only when necessary, route callers to human operators for additional...

Answered: 1 week ago

Question

★★★★★
suppose interest rates are currently 5% and you deposit $200 000 with a bank in exchange for a 3 month certificate of deposit paying 5%. After a month, a liquidity crisis forces you to sell the CD...

Answered: 1 week ago

Question

★★★★★
Many institutions have fixed future liabilities to meet (such as pension payments) and they fund these future liabilities using default-free fixed income securities. When discount bonds of all...

Answered: 1 week ago

Question

★★★★★
how reliance industries has Positioned itself in the minds of consumers?

Answered: 1 week ago

Question

★★★★★
What is meant by Career Planning and development ?

Answered: 1 week ago

Question

★★★★★
What are Fringe Benefits ? List out some.

Answered: 1 week ago

Question

★★★★★
The calibration of a scale is checked by weighing a standard \(10 \mathrm{~g}\) weight 100 times. Let \(\mu\) be the population mean reading on the scale, so that the scale is in calibration if...

Answered: 1 week ago

Question

★★★★★
lw is the instruction with the longest latency on the CPU from Section 4.4. If we modified lw and sw so that there was no offset (i.e., the address to be loaded from/stored to must be calculated and...

Answered: 1 week ago

Question

★★★★★
T.L.C. Enterprises just revised its capital structure from a debt-equity ratio of .37 to a debt-equity ratio of .48. The firm's shareholders who prefer the old capital structure should: sell some...

Answered: 1 week ago

Question

★★★★★
How do network effects help Facebook fend off smaller social-networking rivals? Could an online retailer doing half as much business compete on an equal footing with Amazon in terms of costs? Explain.

Answered: 1 week ago

Question

★★★★★
Explain the purpose of the provision in the tax law that taxes unearned income of certain minor children at their parents tax rates....

Answered: 1 week ago

Question

★★★★★
Lisa Sizemore, a taxpayer in the 1015 percent tax bracket, purchased stock as an investment on July 11, 2013. She sold the stock on July 9, 2014, 2 days before qualifying for the long-term holding...

Answered: 1 week ago

Question

★★★★★
Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guildas basis in her stock is $25,000. On July 31, 2014, Bill sells his stock, with a basis of $40,000, to...

Answered: 1 week ago

Question

★★★★★
To the nearest day, how long will it take a $20,000 investment to grow to $22,000 (including accrued interest) if it earns 7% compounded quarterly? Assume that a quarter year has 91 days.

Answered: 1 week ago

Question

★★★★★
The terms of payment on an invoice are 3/10, n/90. What are the simple and effective annualized rates of return earned by taking the cash discount on the last day of the discount period instead of...

Answered: 1 week ago

Question

★★★★★
Neils common stock portfolio increased in value over a two-month period from $78,900 to $84,300. What were the simple and effective annualized rates of total return over the period?

Answered: 1 week ago

Previous Question Next Question