Question One: Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts since they will have to rent tutoring space, and purchase computers and supplies. She is also concerned about parents and students who may sue if their test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, tells her their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would even result in tax being imposed twice. If they came to you as a CPA, discuss their options.
Question Two: Brenda Lewis had been employed for two years at Heartland Innes of America and gradually worked her way up the management ladder. Lewis, who described herself as a tomboy, was commended for her good work. When she moved to a different Heartland hotel, the director of operations, Barbara Cullinan, told one of the owners that Lewis was not a good fit for the front desk because she was not feminine enough. Cullinan told various people that the hotel wanted pretty girls at the front desk. Cullinan then informed Lewis that her hiring had not been done properly and that she would need to undergo another interview. Soon after the interview, Cullinan fired Lewis. The reason given in a letter was that Lewis was hostile during the interview. Lewis sued Heartland for gender discrimination based on unlawful gender stereotyping. Does her claim fall under Title VII’s prohibition against discrimination based on gender? Why or Why not?
ANSWER ;
(1)
DISCUSSING THEIR OPTIONS
A. Is Wally correct with his proposal that because they share control of the business and split profits equally, they will not have any personal liability for debts?
B. Is Wally correct that forming a corporation would likely result in double taxation?
C. What type(s) of arrangement, if any, would avoid double taxation and personal liability for Wally and Sally's endeavor?
(A.)
When there is no understanding in the business, all the associates to the business are before long in peril for any of the responsibilities that risings during the direct of such business.
In the given case Wally uncovered to Sally that since they share control of the business and split focal obsessions in like way, they won't have any significant obligation seeing duties isn't fitting as when the properties of business are missing to pay the responsibilities of the business then the private properties of the embellishments can be gotten together with no specific data.
( B.)
The case made by the Wally that joining a Corporation will achieve twofold cost structure isn't reasonable as when the compensation is tormented during the estimations of bit of space for seeing then such pay isn't assessable to various budgetary stars.
( C.)
Wally and Sally can go into a data and make a Private Company or the alliance obliged by the offers or Limited Liability association which will help them in keeping up a key standard ways from the twofold cost assessment in like manner as relationship of individual assets if there ought to build up an event of lacking resources in the business.
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Question One: Wally and Sally want to go into business together and plan on offering a...