To assist in this process, Winnie and Ralph asked you to assess several business structures and their
Question:
To assist in this process, Winnie and Ralph asked you to assess several business structures and their characteristics, advantages, and disadvantages for Clean. Those structures are:
- General Partnership
- Limited Partnership
- Limited Liability Partnership
- General Corporation
- Limited Liability Company
Evaluate and synthesize this information, and do the following two things:
1. Chart You Need to Prepare: Create acomparison matrix showing the five types of business structures and comparing and contrasting each type of business structure.
You may use the chart format in the hyperlink above, or create a similar chart, or create an excel chart.
The chart should include several areas for comparison, (e.g., the procedure for the formation, cost of formation, etc.). The chart should consist of various types of liability for comparison.
The chart should be an in-depth and comprehensive comparison.
Ensure the pros and cons of each organizational structure are easily and compared in the chart.
2. Report You Need to Prepare: Write a report to Clean owners:
A. recommending a business structure for Clean that best minimizes tax and personal liability for the new business and its owners
B. explaining and justifying your recommendation, specifically and in detail.
Tips for Formatting Report:The report should use the following format
Report
TO:Winnie James, Ralph Anders
FROM:(your name)
RE: Clean Business Structure
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan