Assume the following facts: Alice, Barry, and Chis have come to you for advice on how to
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Assume the following facts: Alice, Barry, and Chis have come to you for advice on how to organize their new business venture. They want to start a bakery but do not know if they should organize as a sole proprietorship, general partnership (GP), limited partnership (LP), corporation, or limited liability company (LLC).
- Alice, Barry, and Chris want equal control over decisions regarding the business and want to split the profits evenly.
- Alice will work the front counter of the bakery.
- Barry has a home worth $500,000 in his name and a savings account with $200,000. He will be the bookkeeper for the business.
- Chris is an expert baker and cake decorator and will be running the kitchen and baking all the goods.
Which entity should they chose? Explain why you selected your chosen entity in the answer and why you believe it is better than the other options.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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