limited partnership will be created when two medical professionals Akiva and Tara will enter a partnership. This will be an LLP or Limited Liability Partnership. According to Cheeseman (2010, p.274) there is advantage for the partners to enter an LLP as the liability on each partner is up to the capital contribution or investments in the partnership. When articles of partnership is filed with the secretary of the state where the partner ship is organized then the LLP is formed. This partnership is governed
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siness entitiesBusiness Entities, Laws, and Regulations Paper Akiva and Tara Limited liability partnerships are organized to protect individual partners from personal liability for the negligent acts of other partners or employees not under their direct control. LLP's are not recognized by every state and those that do, sometimes limit LLP's to organizations that provide a professional service, such as medicine or law, for which each partner is licensed. Partners report their share of profits
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all essential fundamentals for the termination of their business partnership. An acknowledgement of the effective termination date would need to be set, and all potential risks, if any, should be stated for all parties. The owners and the chefs would meet for a period of 30 minutes and try to dissolve their partnership. The owners and the chefs blame each other for the failure of At Your Service; however, all partakers should act as responsible, mature adults during the meeting. It would speed
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A partnership is considered to be a legal relationship between two or more persons who carry on a business with the objective of making a profit and sharing it between or among themselves; however, the persons are equally liable for its debts. A Limited Liability Partnership (LLP) is a form of partnership that protects its members from being personally liable for negligent acts conducted by other partners or employees under their supervision. It is a popular business structure given that the partnership
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CHAPTER 1 An Overview of Financial Management SOURCE: Courtesy BEN & JERRY’S HOMEMADE, INC. www.benjerry.com STRIKING THE RIGHT BALANCE $ BEN & JERRY'S F or many companies, the decision would have been an easy “yes.” However, Ben & Jerry’s Homemade Inc. has always taken pride in doing things make money. For example, in a recent article in Fortune magazine, Alex Taylor III commented that, “Operating a business is tough enough. Once you add social goals to the demands of serving
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1.0 INTRODUCTION HISTORY OF PARTNERSHIP A partnership is an agreement between two or more people to finance and operate a business. Partnerships, unlike sole proprietorships, are entities legally separate from the partners themselves. In a general partnership, however, profits and losses flow through to the partners’ tax returns. Each general partner has equal responsibility and authority to run the business. Each partner should be involved in day-to-day operations of the business, and should
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Name___________ Period__________ Unit 3 – Business and Labor Chapters 8 & 9 C H A P T E R 8 Business Organizations S E C T I O N 1 Sole Proprietorships The Role of Sole Proprietorships _______________________________________________________________________________________________________________________________________________. A ______________________ is an establishment formed to carry on commercial enterprise. Sole proprietorships are the most common form of
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liability to income taxes. 2. General partnership: h. Liability: General partnership is still responsible for all debts and obligations. Evan if one of the partner has misuse the business for bad acts, the other partners are still responsible. i. Income Taxes: The tax planning for general partnership is still limited. The income taxes will still be file as ordinary income tax. j. Longevity/Continuity: General partnerships are easily form but easily dissolved.
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Legal Forms of Business Law/531 Legal Forms of Business There are multiple legal forms of business including sole proprietorships, partnerships, limited liability partnerships, limited liability companies, S-corporations, franchises, and corporate forms. Entrepreneurs must assess concerns of liability, risks, and assets when considering these optional forms of business because each form has its own advantages and disadvantages. The following paragraphs illustrate specific scenarios
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Business Structures FIN 571 July 20, 2015 Business Structures When forming a business, there are three basic structures to identify and understand. Sole proprietorship, partnership, and corporation comprise the basic structures. The partnership can be a general partnership or a limited liability partnership and the corporation can be three types: general, subchapter S (S corporation), and limited liability company (LLC). For a business venture, there are many questions to contemplate
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