Question

1. Alan Dershowitz, a law professor famous for his wealthy clients (O. J. Simpson among others), joined with other lawyers to open a kosher delicatessen, Maven's Court. Dershowitz met with greater success at the bar than in the kitchen-the deli failed after barely a year in business. One supplier sued for overdue bills. What form of organization would have been the best choice for Maven's Court?

Answer 1

Answer:

1.A sole proprietorship would not have functioned, since there was more than one owner. A partnership would have been a catastrophe for the reason that of unlimited liability. An LLP was a likelihood, as long as the owners did not forestall selling their shares. A limited liability partnership would have functioned, too. An S Corp would have been thinkable since the owners could have subtracted their losses on this investment from their (considerable) other income and still enjoyed limited liability. The owners would maybe not have been nervous by the limitations of an S Corporation—only one class of stock, for example—but the details involved in forming and maintaining an S Corporation can be vexing. Like many start-ups today, Maven's Court perhaps would have been an LLC.

Question 36

Silver light Co. Comparative Balance sheet As at Cash Accounts Receivable Merchandise Inventory Plant Assets Total Assets Year 2 Amount % 34.2 6% 85.5 15% 125.4 22% 324.9 57% 570 100% Year 1 Amount % 35.7 7% 76.5 15% 91.8 18% 306 60% 510 100% 51.3 159.6 Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 279.3 9% 28% 49% 14% 100% 76.5 107.1 265.2 61.2 510 15% 21% 52% 12% 100% 79.8 570