Reference no: EM13765620
Three (3) personal trainers at an upscale health spa / resort in Sedona, Arizona, want to start a health club that specializes in health plans for people in the 50+ age range. The trainers Donna Rinaldi, Rich Evans, and Tammy Booth are convinced that they can profitably operate their own club. They believe that the growing population in this age range, combined with strong consumer interest in the health benefits of physical activity, would support the new venture. In addition to many other decisions, they need to determine the type of business organization that they want to form: incorporate as a corporation or form a partnership. Rich believes there are more advantages to the corporate form than a partnership, but he has not convinced Donna and Tammy of this. The three (3) have come to you, a small-business consulting specialist, seeking information and advice regarding the appropriate choice of formation for their business. They are considering both the partnership and corporation formation options.
Assume the trainers determine that forming a corporation is the best option. Next, Donna, Rich, and Tammy need to decide on strategies geared toward obtaining financing for renovation and equipment. They have a grasp of the difference between equity securities and debt securities, but do not understand the tax, net income, and earnings per share consequences of equity versus debt financing on the future of their business. They have asked you, the CPA, for your opinion.
Write a two to three (2-3) page paper in which you:
- Provide a summary to the partners, outlining the advantages and disadvantages of forming the business as a partnership and the advantages and disadvantages of forming as a corporation. Recommend which option they should pursue. Justify your response.
- Explain the major differences between equity and debt financing, and discuss the primary ways in which each would affect the future of the partners' business.
- Use at least two (2) quality academic resources in this assignment.
|
What is the legal nature of marwans employment
: What is the legal nature of Marwan's employment? Explain your answers and the terms you use. What actions and steps should Studio Five take against Marwan? Explain what actions you considered and why you either recommend them or reject them
|
|
Images of organizations analysis concept
: Which images would be most compatible with a stakeholder view of organizations in an environment of sustainability consciousness?
|
|
Analyze the influence that legal issues
: the companys strategic planning, tactical planning, operational planning, and contingency planning - Analyze the influence that legal issues, ethics, and corporate social responsibility have had on management planning
|
|
Impactful law principles
: Choose a topic of interest from this course = DEBTOR-CREDITOR RELATIONSHIPS, Impactful Law PrinciplesDistrust of Law and Misconceptions
|
|
Advantages and disadvantages of forming the business
: Provide a summary to the partners, outlining the advantages and disadvantages of forming the business as a partnership and the advantages and disadvantages of forming as a corporation. Recommend which option they should pursue. Justify your respo..
|
|
Process routers and switches
: Do you think that one day, routers and switches will not be needed? Why?
|
|
Terms and concepts that focus on international trade
: Simple terms and concepts that focus on international trade and foreign exchange rates.
|
|
Financial statements are prepared monthly
: During December 2013, Expert Publications sells 4,000 copies of the golf magazine at newsstands and receives payment for 6,000 subscriptions for 2014. Financial statements are prepared monthly?
|
|
Describe the important elements of organizational behavior
: Describe the important elements of organizational behavior and how these elements can challenge the effectiveness of an agency
|