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General partnership A corporation without an S election Sole proprietorship A corporation with an S election

General partnership A corporation without an S election Sole proprietorship A corporation with an S election

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Meredith had always dreamed about starting her own publishing company. She talked about it constantly. Her family figured she probably would. It began at the age of six when Meredith created a newsletter which she distributed to her classmates each week. She charged them one penny per copy. Since her customers were only six years old, she often had a hard time collecting payment. Fortunately, she had an older brother Thomas who was quite persuasive. He became her debt collector. About five years later, Meredith quit the newsletter and began writing articles for the school newsletter. She was the youngest journalist the school had ever had. Meredith became fairly well known in the local area after she uncovered a story about corruption in the high school student council. It seemed that the student council had been bribed by teachers with candy bars, pizza, and photos of puppy dogs. In exchange, the student council was supposed to implement policies the teachers wanted implemented. In high school, Meredith became the youngest journalist to ever work for her city's newspaper. She continued to engage in investigative research. However, as she reached her college years, she became disenchanted with the news industry. She began to entertain the idea of being a social media entrepreneur. She majored in business at her state's public university. During her junior and senior years at college, Meredith because one of the first most well-known social media influencers. Her brother Thomas once again proved himself useful. He had majored in accounting. He became her business manager and part-time videographer. As Meredith started to generate substantial sums of money, she quickly remembered her business law teacher talking about business organizations. She did not remember all of her choices. She did remember a crutch was somehow involved in the class. He was also always talking about finding your purpose in life. Regardless, she had a choice to make. Meredith wanted to minimize her legal liability from the entity and she wanted to avoid double taxation. She wants Thomas to own a minority share of the business entity. Based upon these facts alone Meredith should choose a (an)
Transcribed Image Text:Meredith had always dreamed about starting her own publishing company. She talked about it constantly. Her family figured she probably would. It began at the age of six when Meredith created a newsletter which she distributed to her classmates each week. She charged them one penny per copy. Since her customers were only six years old, she often had a hard time collecting payment. Fortunately, she had an older brother Thomas who was quite persuasive. He became her debt collector. About five years later, Meredith quit the newsletter and began writing articles for the school newsletter. She was the youngest journalist the school had ever had. Meredith became fairly well known in the local area after she uncovered a story about corruption in the high school student council. It seemed that the student council had been bribed by teachers with candy bars, pizza, and photos of puppy dogs. In exchange, the student council was supposed to implement policies the teachers wanted implemented. In high school, Meredith became the youngest journalist to ever work for her city's newspaper. She continued to engage in investigative research. However, as she reached her college years, she became disenchanted with the news industry. She began to entertain the idea of being a social media entrepreneur. She majored in business at her state's public university. During her junior and senior years at college, Meredith because one of the first most well-known social media influencers. Her brother Thomas once again proved himself useful. He had majored in accounting. He became her business manager and part-time videographer. As Meredith started to generate substantial sums of money, she quickly remembered her business law teacher talking about business organizations. She did not remember all of her choices. She did remember a crutch was somehow involved in the class. He was also always talking about finding your purpose in life. Regardless, she had a choice to make. Meredith wanted to minimize her legal liability from the entity and she wanted to avoid double taxation. She wants Thomas to own a minority share of the business entity. Based upon these facts alone Meredith should choose a (an)
General partnership A corporation without an S election Sole proprietorship A corporation with an S election
Transcribed Image Text:General partnership A corporation without an S election Sole proprietorship A corporation with an S election
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