Concepts of limited liability

Reference no: EM13720787

Assignment:

You have a good friend named Frank who is planning to form a new business. He comes to you for advice. He is a Christian, and he wants to obey God in the operation of his business. He is concerned as to whether Christians should attempt to minimize their tax burdens, after all, "Render unto Caesar that which is Caesar's," right? Further, he is concerned as to what liability protection really means and whether a Christian should use an entity that provides for liability protection. He fears that by using such an entity he might be shirking his personal responsibilities. In order to help Frank with his decision, answer the following questions:

Question 1: Define what is meant by the concepts of limited liability, and/or liability protection. From the perspective of a Christian worldview, is it wrong for a business owner to use a business organization form that provides for liability protection?

Question 2: From the perspective of a Christian worldview, is it wrong for a business to try to minimize its overall tax burden?

Reference no: EM13720787

Questions Cloud

Find what would the slope and the y-intercept : The following table of data shows a linear relationship between two variables, s and t. If you were to plot s vs. t, what would the slope be and what would the y-intercept be? (Note: You do not need to make a graph.)

Suppose that an investor opens and account by investing : Suppose that an investor opens and account by investing $1,000. At the beginning of each of the next four years, he deposits additional $1,000 each year, and he liquidates the account at the end of the total five-year period. Suppose the yearly retur..

Analysis of organizational behavior : You will analyze the organizational behavior of your current or former employer. Describe how the following areas influence the organizational behavior in a negative or positive manner

What will the firms after-tax cost of debt : A company plans a new issue of bonds with a par value of $1,000, a maturity of 20 years, and a semi-annual coupon rate of 16.0%. Currently, the bond is selling for $842.00. The firm's marginal tax rate is 30%. What will the Firm’s after-tax cost of d..

Concepts of limited liability : Define what is meant by the concepts of limited liability, and/or liability protection. From the perspective of a Christian worldview, is it wrong for a business owner to use a business organization form that provides for liability protection?

Assets liabilities and capital total assets : High Sky, Inc., a hot-air balloon manufacturing firm, currently has the following simplified balance sheet: Assets Liabilities and Capital Total Assets $ 1,100,000 Bonds (10% interest) $ 600,000 Common Stock at par ($3), 100,000 shares outstanding $ ..

Assignment on business-level and corporate-level strategies : Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opini..

Investigate the major demotivational factors : Investigate the major demotivational factors at Kaluyu Memorial Hospital. Assess the level of impact that the identified factors could have on specific areas of service and business if the administration does not address the situation.

Shareholders require to be compensated for financial risk : Ethier enterprises has an ulevered beta of 1.0. Ethier is financed with 50% debt abd has a levered beta of 1.6. If the risk free rate is 5.5% and the market risk premium is 6%, how much is the additional premium that Ethier's shareholders require to ..

User Account

All Pages