Alan Dershowitz & Maven's Court
Because the deli failed, it would be safe to assume that Mr. Dershowitz and his associates would ideally prefer a company variety that would protect them against a personal liability in the event their business would go under.
The owners might have chosen a partnership, which would equally distribute the profits and losses between the members of the business. This would allow for every member to equally be financially responsible in the event that the business were to fail. However, if the members want full financial protection, it would be best to choose to be a limited liability company (LLC) or a corporation, where the business and its owners are two or more separate entities.
Question #2 - Mrs. Meadows & The Biscuit Shop:
A promoter is...
If a promoter signs a contract before a company has become legally incorporated, the promoter is financially responsible for those contracts signed.
This particular scenario states that Mrs. Meadows has opened a biscuit shop. The shop is not incorporated. This means that as the company promoter, Mrs. Meadows is financially responsible for her company's unpaid flour bill because she signed for it. Once the business becomes incorporated, the only way for her to no longer be financially responsible for the particular sale would be to have The Biscuit Bakery to adopt the previous contract that was in her name.
Question #3 - The Logan Foundation: Limited
A limited partnership requires two or more entities and at least one general partner. Within the…
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