Advantages and disadvantages of not forming partnership

Assignment Help Financial Accounting

Reference no: EM131262264

Mario Rosario (“Mario”), a permanent resident in Hong Kong, owns a small wine cellar in Central selling top-end wines and Scotch under the name “Mario & Company”. Joseph Lai (“Joseph”) would like to invest in “Mario & Company”. In a conversation with Mario on 3 February 2016, Joseph said:

“I think your business is good. That’s why I want to get involved. But I don’t want to be a partner. What should we do? I know nothing about the law.”

Advise Joseph on what can be done to invest in “Mario & Company” without becoming a partner (i.e. a partner in a partnership). Also advise on the advantages and disadvantages of not forming a partnership.

Reference no: EM131262264

Questions Cloud

Leases demolition equipment to credit worthy adults : A Company leases demolition equipment to credit worthy adults who wish to destroy the homes a competitor. A Company has agreed to lease a crane with a wrecking ball to Barbara. Ms. Bush has formed a limited liability corporation, BB, Inc., to lease t..

The straight-line method of depreciation would be used : On January 1, 2016, Alpha Company purchased equipment for $16,000 with an estimated 10-year life and no salvage value. It was determined that the straight-line method of depreciation would be used. Alpha has a December 31 fiscal year end. During 2020..

Using the double-declining balance method : Bravo Company purchased a truck on October 1, 2016. Bravo paid $10,000 for the truck in addition to $500 registration & sales taxes. The truck is expected to have a $2,000 residual value and a 5-year life. Bravo has a December 31 fiscal year end. Usi..

Be happy taxable income and regular income tax : All deductions, phase-out amounts, taxes, etc. are to be derived from the 2015 tax laws and rates. Be Hapy Corporation, a fiscal year, accrual basis C corporation, has income and expense for the year ended June 30, 2016 as follows: Compute, in schedu..

Advantages and disadvantages of not forming partnership : Mario Rosario (“Mario”), a permanent resident in Hong Kong, owns a small wine cellar in Central selling top-end wines and Scotch under the name “Mario & Company”. Advise Joseph on what can be done to invest in “Mario & Company” without becoming a par..

What are the advantages of flexible budget : Considering our current economic conditions should a business or a person create a flexible budget? What are the advantages of a flexible budget? How does a business create flexible budgets?

Compute the company margin of safety : Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price $27 per unit Variable expenses $14 per unit Fixed expenses $11,050 per month Unit sales 1,000 units per..

Compute the overall contribution margin ratio : Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Compute the overall contribution margin (CM) ratio for the company. Compute the overall b..

Determine for the unit sales : Lin Corporation has a single product whose selling price is $140 and whose variable expense is $70 per unit. The company’s monthly fixed expense is $32,250. Using the formula method, determine for the unit sales that are required to earn a target pro..

User Account

All Pages