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Both the corporation and the limited liability company (LLC) offer similar legal advantages and protections to their owners. Specifically, their owners cannot be held liable for the debts of either entity.
LLCs have a distinct tax advantage for some businesses. Their taxes are "pass-through." That is, the profits and the responsibility to pay taxes on them are passed to the owners rather than paid by the LLC.4
There are a couple of other key differences:
An LLC is governed by an operating agreement that sets out the roles and responsibilities of its members. An LLC may consist of a partnership of lawyers or doctors sharing a practice. Some big businesses like Anheuser-Busch also are LLCs. The process of establishing an LLC is relatively straightforward.
A corporation elects a board of directors, conducts annual meetings, and adopts bylaws. The process can be complex and lengthy, depending on the state in which it incorporates.
Define Pareto Efficiency and discuss the appropriateness of employing GeneralEquilibrium Analysis in its assessment.
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Can a manager also be a leader or will they get too bogged down in the "rules and regulations" of a company to be an effective leader? Explain.
BUS 308- How can you or your department decide whether or not the observed differences over time are important? How could using a mean difference test help?
Setup:Assume that the stock price for XYZ Corp follows a binomial lattice
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Read the Corning Incorporated: The Growth and Strategy Council
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