Please answer question 2 and 4

424 UNIT THREE Business and Employment For Review 1. What advantages and disadvantages are associated with the sole proprietorship? 2. What is meant by joint and several liability? Why is this often considered to be a disadvantage of doing business as a general 3. What advantages do limited liablity partnerships offer to entrepreneurs that are not ofered by general partnerships? 4. What are the key differences between the rights and liabilities of general partners and those of limited partners? 5 How are limited liability companies formed, and who decides how they ill be managed and operated? Business Scenarios and Case Problems 4-1. Limited Liability Companies. John, Lesa, and Tabir form a limited liability company John contributes 60 percent of the capital, and Lesa and Tabir each contribuse 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be encitled to 60 percent of the profits, in accordance with his contribution. Less and Tabir, however, vote to fire him. No reason was provided. Williord sue Bluewater and the other members. Did Smith, Mosser, and Floyd breach the state LLC statute, their fiduciary duties, o the Bluewater operating agreements? Logistics, LLC Willifond, 55 So.3d 148 (Miss. 201)I (Se Limited Liability Companies.) Discuss. Eluewate assume that the profits will be dividled equally A dispuse over For a sample answer to Problem 14-4, go to Appendis the question arises, and ultimately a count has to decide the issue. What law will the court apply? In most states, what will E at the end of this text. result? How could this dispute have been avoided in the first 14-5. Spotlight on Liberty Tax-Quality Control. I place? Discuss fully. (See Limited Liability Companies) Tax, Inc., doing business as Liberty Tax Service, pro 14-2. Dissolution of Limited Partnership. Dorinda, Luis, and vides tax preparation and related loan services through com Elizabeth form a limited partnership. Dorinda is a gen- eral partner, and Luis and Elizabeth are limited partners Consider each of the separate events below, and discuss fully which would constitute a dissolution of the limited partner- ship. (See Limited Partnerships.) 1. Luis assigns his partnership interest to Ashley 2. Elizabeth is petitioned into involuntary bankrupacy 3, Dorinda dies ed and franchised stores. Liberty's agreement wit its franchisees reserved the right to control their ads. I operations manuals, Liberty provided step-by-step instru tions, directions, and limitations regarding the franchisee ads and retained the right to unilaterally modily the steps a any time. The Calfornia attorney general filed a suit in California state court against Liberty, alleging that its franch sees had used misleading or deceptive ads regarding refun anticipation loans and e-refund checks. Can Liberty be hel liable? Discuss. IPeople JTH Tax, Inc., 212 Cal.App.4 1219, 151 Cal.Rpur. 3d 728 (i Dist 2013)1 dSee Franchises 14-3. Partnership Formation. Daniel is the owner of a chain of shoe stores. He hires Rubya to be the manager of a new store, which is to open in Grand Rapids, Michigan. Daniel, by writ ten contract, agrees to pay Rubya a monthly salary and 20 percent of the profits. Without Daniel's knowledge, Rubya represents himself to Classen as Daniels partner, showing Classen the agreement to share profits. Classen extends credit to Rubya. Rubya defaults. Discuss whether Classen can hold Daniel liable as a partner. (See Partnerships) 14-6. Jurisdictional ents. Fadal Machining Center LLC, and MAG Industrial Automation Centers, LLC, sue a New Jersey-based corporation, Mid-Atlantic CNC, Inc. federal district court. Ten percent of MAG was owned by s MAG Holdings, a Delaware LLC. SP MAG had six membet including a Delaware limited partnership called Silver Poi Capital Fund and a Delaware LL.C called SPCP Group L In turn, Silver Point and SPCP Group had a common me ber, Robert O'Shea, who was a New Jersey citizen that the amount in controversy exceeds $75,000 district court have diversity jurisdiction? Why or why Fadal Machining Centers, LLC v Mid-Atlantic CNC In W1 8669 (9th Cir 2012)] (See Limited Business Case Problem with Sample Answer- LLC Operation. After Hurricane Katrina, James 14-4. Williford, Patricia Mosser, Marquetta Smith, and Michael Floyd formed Bluewater Logistics, LLC, to bid on construc contracts. Under Mississippi law, every member of a member-managed LLC is entitled to participate in managing