What type of arrangement did wally propose

Assignment Help Finance Basics
Reference no: EM132372462

Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts since they will have to rent tutoring space, and purchase computers and supplies. She is also concerned about parents and students who may sue if their test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, tells their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would even result in tax being imposed twice.

What type of arrangement did Wally propose with his suggestion that they share control of the business and split profits equally, not bothering with a written agreement?

Reference no: EM132372462

Questions Cloud

What are some of the lessons learned : Identify a company and discuss the key to their effective leadership and work motivation. What are some of the lessons learned?
Thinking specifically about disney theme parks : How does Disney connect with the target market? What are some of the challenges associated with Disney theme parks? Use examples.
With whom should you consult about design strategies : With whom should you consult about design strategies to improve products/services and why would you consult with these individuals or groups?
Make a list of the different types of legislation : Make a list of the different types of legislation that apply to the business that can affect customer service
What type of arrangement did wally propose : What type of arrangement did Wally propose with his suggestion that they share control of the business and split profits equally
Statement that she had no personal liability : Which of the following is true regarding Kitty's statement that she had no personal liability?
What are some financial structure risks and indicators : What are some financial structure risks and indicators when foreign companies are thinking of investing in South Africa.
What is the total compensation for the three highest paid : What is the total compensation for the three highest paid officers for Walmart last year(including the value of stock options and other benefits)?
Be creative and brainstorm some ways to redesign : Be creative and brainstorm some ways to "redesign" your office space (or an office space you have previously worked in) on paper,

Reviews

Write a Review

Finance Basics Questions & Answers

  Why does congress allow tax deferral on the formation of a

Discuss how a taxpayer’s tax basis in property received in a property transaction will be affected based on whether a property transaction results in gain exclusions or gain deferral.

  Create a statement of cash flows

Bando Corporation has a $300,000 balance in Accounts Receivable and a $4,000 debit balance in Allowance for Doubtful Accounts. Credit sales for the period totaled $1,800,000.

  What is the effective annual rate of a savings account

What is the effective annual rate of a savings account that pays an APR of 3% and compounds quarterly? Answer in percent and round to two decimal places.

  Define net present value method for the project

Which of the two projects should be chosen based on the net present value method? Assume a cost of capital of 10 percent.

  Differentiate between eaa and eac

If two mutually exclusive projects with unequal lives have equal NPVs, which project will have the higher equivalent annual annuity? Why?

  Calculation of slope and intercept

Using information in chart 6-11 compute a moving average forecast for months 4 through 12 using weights of 3, 5,9 What is the MAD for this forecast?

  Question regarding the normal distribution table

If you want to find out the probability that a randomly picked student has scored 85 or above, what is the z value that you should look up on the normal distribution table? Show work

  What is the yield to maturity on the bond in given problem

The 8% of 20YY's have a market price of $11,617.05. Note that this bond matures in 14 years. Assume that the next coupon payment is exactly six months away.

  Problem regarding intellectual property

The late 1990s saw the rise of corporate valuations arising from ownership of various forms of intellectual property, rather than the traditional value arising from production and sale of goods or services.Discuss this issue and prepare a 6 page m..

  What rate should the shop report

EAR versus APR. Ricky Ripov's Pawn Shop charges an interest rate of 13.7 percent per month on loans to its customers.

  Evaluate the consequences to a publically traded company

Evaluate the consequences to a publically traded company when there is a lack of quality within financial accounting and reporting.

  Determine the economic order per quantity

Knoxville Accountants LLP consumes 100,000 packets of plain copier paper yearly. The usage is roughly steady throughout the year. The carrying expenses of this inventory is $2.00 per unit average inventory per year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd