Organizational form of the business

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Reference no: EM133170376

Covel, S. (2009, Sep 28). The money game --- the double whammy of bankruptcies: Entrepreneurs often don't realize that their personal assets are at risk; until it's too late (Links to an external site.). Wall Street Journal.

 The article talks about the different forms of businesses. It can also be used to compare how the impact of a firm's bankruptcy on its owners depends on the organizational form of the business.

SUMMARY: Bankruptcy is an ordeal for executives at any business. But for entrepreneurs, it's often a double whammy: Their personal possessions are in jeopardy along with the business assets.

The following four questions are based on Wall Street Journal Article:

  1. What is your main take-away from this article? What did you learn the most? 
  2. How does a firm's bankruptcy affect the owner of a sole proprietorship?
  3. What is an LLC? How does an LLC or corporation differ from a sole proprietorship or partnership if the firm goes bankrupt?
  4. How does a personal loan guarantee impact an owner if the firm is set up as a sole proprietorship, a partnership, a limited partnership, an LLC, or a corporation?

Reference no: EM133170376

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