Principles of Financial Accounting.
Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 12, Problem 2BTN
To determine

Prepare a one-page set of study notes about the four forms of business organization.

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You are an accountant with a client that wants to set up a new company.  She has come to you to ask what type of company to form.  She is trying to decide between a corporation, an LLC, or a sole proprietorship.  Taking into account the ability to raise capital, liability protections, taxation issues, ability to transfer ownership, and any other aspects you can discover discuss the pros and cons of the various entity forms.  You can use your textbook but you should consult other courses as well.   (It depends on what kind of company your client is opening and what they want to accomplish.  The best you can do is give the client some information to think about. This post should cover the general aspects of the various type of business entities.)
Define and discuss each of the following by providing at least 2 practical examples:   1. Limited Partnership; Limited Liability partnership; Professional corporation?    2. A friend asked you to reveal important financial information of the company, being a finance manager of the company what would you do? Justify by considering ethics in finance.   3. Describe mechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?
Question: Define and discuss each of the following by providing at least 2 practical examples:   Limited Partnership; Limited Liability partnership; Professional corporation?  A friend asked you to reveal important financial information of the company, being a finance manager of the company what would you do? Justify by considering ethics in finance.  Describe mechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?
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