imited company. What id s downside of incorporation in these circumstances? Perpetual succession. A separate legal entity for contracts. Compliance and reporting obligations and on-going registration fees. Limited liability for members of the company
imited company. What id s downside of incorporation in these circumstances? Perpetual succession. A separate legal entity for contracts. Compliance and reporting obligations and on-going registration fees. Limited liability for members of the company
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 72TA
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6
Jeremy and Patricia are a married couple that want to purchase a bakery franchise. profit for the franchise last year was $1 million. They are considering purchasing the business as a partnership or through a proprietary limited company. What id s downside of incorporation in these circumstances?
Perpetual succession.
A separate legal entity for contracts.
Compliance and reporting obligations and on-going registration fees.
Limited liability for members of the company
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