Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $ 2,20,000. D repaid only $ 9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt. To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Answer 1

Question

Chapter 16, Problem 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Answer 2

Question

Chapter 16, Problem 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Answer 3

Question

Chapter 16, Problem 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Answer 4

Question

Chapter 16, Problem 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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Answer 5

Chapter 16, Problem 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

Answer 6

Chapter 16, Problem 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

Answer 7

Chapter 16, Problem 1CT

Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

Answer 8

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Answer 9

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Answer 11

Ch. 16 - Prob. 1RE Ch. 16 - Prob. 2RE Ch. 16 - Prob. 3RE Ch. 16 - Prob. 4RE Ch. 16 - Prob. 1IS Ch. 16 - Prob. 2IS Ch. 16 - Prob. 1BS Ch. 16 - Prob. 2BS Ch. 16 - Prob. 3BCP Ch. 16 - Prob. 4BCP

Solution Summary: The author explains how individuals seeking funds for online projects can avoid personal liability by changing their business from sole proprietor to limited liability company.

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Chapter 16 Solutions