FINAL EXAM Essay Example | Topics and Well Written Essays - 750 words

FINAL EXAM - Essay ExampleThis separates personal assets from personal line of credit assets hence cannot be knobbed in lawsuits. The other advantage is that cooperate channel has a continuity agreement, in that even if ane member dies the other sh arholders still afford it alive. Disadvantages come in when it is required to file many intelligent documents such as the certificates and articles of incorporation, which may take long and is cumbersome. Another major disadvantage is that cooperate business do get tax deductions when distributing dividends, and this eats up into shareholders earnings. Question 3 To pierce the corporate confuse refers to the possibility of someone to sue the owners of the corporate business. The corporate shareholders are thus held personally liable for the assets and liabilities of the business. three-fold taxation happens when the cooperate business is taxed for being a corporation itself and the second time when distributing dividends which are mesh paid to shareholders in return of their investments. Question 4 I would prefer to start a confederation business for a small cafe/restraint business, where I would sell beverages and snacks. If managed well, a restaurant business can be very profitable as food is one of the basic needs of a human being implying that customers would always stream into the restaurant provided high quality services are provided. Restaurants do not need a lot of chief city and expertise to start, all it needs is a immense room with furniture, a well stocked kitchen, a couple of employees, cooks and waitresses. I prefer a confederacy business with two partners where every partner has equal responsibilities to the business and is involved in the daily operations of the restaurant. Partnerships are relatively easy to start and compared to sole proprietors, the partners can raise a higher capital to start the business. Partners help each other in business decisions for instance interviewing employ ees or signing in a new contract. In connection to my restraint business, my partner should have a hotel and catering skills to panegyric my business skills. With a partnership, it is easier to get credit facilities because they have unlimited liability hence easier to raise decent funds to run the restaurant. Lastly, a partnership business is easy to dissolve as there not many legal restrictions. When the partners decide to go separate ways they just need to agree on how to split the assets and benefits after remunerateing all the debts. Question 5 General liability- Here, the court will have to establish who has right to control the work and workers performing the duties. Parties Intentions- The intention of parties is also considered when differentiating an employee and a contractor. The court should settle the agreement between the parties. Financial control- In determining a persons status, financial issues are also important. The court should establish who pays the workers and where they get tools to perform their duties. Tax- If the worker is an independent employee, he is supposed to pay taxes from his/her pocket but if the worker is a contractor the hiring parties should pay his taxes. Working time- If the working time is seven-day than that of a usual contract, then the workers lean more towards the employee side than a contractor. Question 6 In legal terminologies, respondeat superior means the employer is liable for the mistakes of their employee committed on the scope of work (Marsh &