John Albert and Matthew Baker have been friends for many years. They have decided to go into business together in Phoenix, Arizona. Each of them has worked as a loan officer for a mortgage lending bank in the past. They believe a new lending company would be prosperous. They decide to open a company and call it the ?Lending Store?. They have never owned a business before so need some help getting their business venture started. They know you have recently taken a course about business law and come to you for some business advice;1. Albert and Baker are considering the merits of forming the company as a general partnership. Explain what their respective rights would be as to (a) any profits of the company and (b) participating in the management decisions of the company.;2. If Albert and Baker actually formed a general partnership, explain how this type of business entity would impact each partner on a personal basis with regard to any liabilities owed by the new company.;3. Another possible approach would be for Albert and Baker to form a corporation for their new business. Explain the steps these individuals would be required to take in order to get the corporation legally formed and ready to open the doors for business.;4. If Albert and Baker actually formed a corporation, explain what their personal obligation would be for any liabilities owed by the new company.;5. Albert and Baker are not aware of any other choices for the structure of their new business. Provide them with one more idea for a form of business (other than a general partnership or corporation). Explain some of the advantages and disadvantages of this third form of business entity.
Paper#34916 | Written in 18-Jul-2015Price : $27