Question

PRINIER VERSON BACK Problem 1-1A (Essay) Presented below are five independent situations. physics professors at MIT have formed a business to improve the speed of information transfer over the Internet for stock exchange transactions,. Eacth has contribut an equal amount of cash and knowledge to the venture. Although their confront. approach looks promising, they are concerned about the legal iablities that their business might (b) (c) Alma Ortiz and Jaime Falco each owned separate shoe manufacturing businesses. They have Bob Colt, a college student looking for summer employment, opened a bait shop in a small shed at a local marina. they will need significant funds to expand their operations 0 year marengpoln aos ta Inde widegrees. They have been triends since chidhood. They have dedided to start a consuting business focused on e) Don Rolls has developed a low-cost GPS device that can be implanted into pets so that they can be easily located facility to make the devices when lost. He would like to build a small manufacturing across the country. Don has no savings or personal assets. He wants to maintain control over the business and then sell them to veterinarians in each case, exclain what form of organization the buiness s liey to take-sole proporl etorship, partnership, or corporation. Give reasons for your choice INK TO TEX Question Attempts o of 3 ased SAve Fow LA UNEY ANSER 5 6 8 9

Answer 1

Answer

Sl No	Question No	Form of organisation	Reasons
1	(a)	Partnership	1. in this case, three persons together formed business and contributed equal amount of capital and knowledge. 2. Since, they are concerned about the legal liabilities, it is not recommended to choose corporation. Therefore, it is recommended to form partnership firm.
2	(b)	Sole proprietorship	Only single person is doing business, it is recommended to form sole proprietorship firm.
3	(c)	Corporation	Since there has been a significant fund requirement to expand the operations, it is good to form a corporation and get public funds.
4	(d)	Partnership	Three persons together formed business, therefore, it is recommended to form partnership firm.

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Please revert for any clarifications,.

Answer 2

1. Corporation: There would be no personal liability

2. Sole proprietorship: They businesses are generally owned by one person and are small service typed businesses

3. Corporation: Funds can be raised easily 

4. Partnership: Owned by two or more individuals

5. Partnership: He would still be the owner and partnerships are often retail and service type businesses.