Case Study 1
Blanche, Rose and Dorothy formed a partnership, Retirement Living, to provide temporary housing for elderly people in the Miami area. One of the temporary residents set fire to the house, which resulted in the loss of the entire building and contents. One of the residents, Sophia, sued Retirement Living and obtained a judgment of $ 50,000 against it, but the partnership could not pay the judgment.
- What are Sophia’s options if the Retirement Living partnership cannot pay the $50,000?
- Will Sophia win if she tries to collect the entire debt from Blanche?
- What are Blanche’s options if Sophia sues her for the entire debt?
Analyze the case studies, respond to each of the three questions, and support your responses with the applicable law and/or text materials
Case Study 2
McCoy, Spock and Kirk are interested in going into business together. McCoy inherited a great deal of money from his friend, Scotty. Spock is an award-winning salesman with a marketing degree from State University and worked for five years as a senior sales manager in a large automobile manufacturing corporation. Kirk is an engineer who has developed a vehicle that will, according to him, “allow people to boldly go where no man has gone before.” Kirk, Spock and McCoy believe a general partnership is the best form of business for the trio. Do you agree? Provide the advantages and disadvantages of their selection and then discuss two other options that might be more appropriate for the group. Conclude your paper by making a recommendation for the most appropriate choice. Support your answer with the applicable law and/or text material.
Case Study 3
The Conners family operates a small transportation service for the elderly to take them to doctor’s appointments, grocery shopping and other errands. The three (3) adult members of the Conners family, Dan, Roseanne and Jackie, would like to become a corporation and obtain limited liability; however, taxation at the corporate level would be very costly for them. If possible, Roseanne would rather be taxed as a partnership. Dan is worried about the additional paperwork and meetings that incorporation would surely bring. Jackie does not want a large board of directors to be formed. Jackie fears that the board would somehow detract from the family goals and orientation the business has always enjoyed. In light of these concerns, is there a corporate form or other type of business organization that would better suit the Conners family? Explain the options, select the best option for the Conners and justify your selection with the applicable law and/or text materials.
Support responses with examples, the law, and/or text materials, and use APA formatting in the paper