Both Tyler and Byron were presidents of small corporations involved with manufacturing and selling skateboards. Tyler’s store was called “Thrasher Skateboard” and Byron’s business was called “Skateboard for Health.” Because a large sports store was coming into town, they, along with the boards of directors of the two companies and all shareholders, decided that it would be a good idea to combine the businesses. They decided to retain the name “Skateboard for Health.” However, Tyler was concerned with the change because, on behalf of his company, he was contemplating filing a lawsuit against Sean who had purchased 10 custom skateboards and had not paid for them. He was excited, however, about the prospect of not being liable for a lawsuit he expects to be filed by Alec who fell and sustained a serious ankle sprain and medical bills when a wheel came off of a skateboard sold by Tyler’s corporation. After investigation, Tyler is aware that the wheel was negligently attached to the skateboard. Tyler told Byron that one reason he wanted to retain Byron’s name was to prevent Alec from being able to recover against him. Which of the following is the appropriate term for the action contemplated by Tyler and Byron to combine the businesses under the name “Skateboard for Health”?
[Tutoring Concerns] André and Sasha want to go into business…
André and Sasha want to go into business together and plan on offering a tutoring service to high school and college students. André proposes that they share control of the business and split profits equally and not bother with a written agreement. Sasha, however, is concerned about being able to pay their debts, since they will have to rent tutoring space, and purchase computers and supplies. She is also concerned about parents and students who may sue if their test scores do not improve. She tells André that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells André that they should form a corporation to shield their personal assets. André, however, tells Sasha that their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would result in a tax being imposed twice. Is André correct in his assertion that by sharing control of the business and splitting profits equally there could be no personal liability for debts?
The tax planning strategy of putting off paying the tax for…
The tax planning strategy of putting off paying the tax for 10 years so that you may earn enough interest on the unpaid tax to pay the tax bill is an example of which of the following tax planning strategies:
Groups of cells that are similar in structure and function a…
Groups of cells that are similar in structure and function are called:
The tax planning strategy of putting off paying the tax for…
The tax planning strategy of putting off paying the tax for 10 years so that you may earn enough interest on the unpaid tax to pay the tax bill is an example of which of the following tax planning strategies:
All chemical reactions that occur within body cells is refer…
All chemical reactions that occur within body cells is referred to as _____________.
The cell type found in nervous tissue is the _________.
The cell type found in nervous tissue is the _________.
“Head of household” status is available to a taxpayer:
“Head of household” status is available to a taxpayer:
[Machine Malfunction] Michael, the president of a health clu…
Michael, the president of a health club operation called Head-to-Toe Health Club, convinced the board of directors to approve a large purchase of a certain fitness machine called “Perfect Body.” Michael had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that “Perfect Body” was actually a very dangerous machine that should not be used. The manufacturer of “Perfect Body” went bankrupt, and Head-to-Toe lost $200,000 on the purchase of the machines. The shareholders are furious and want to sue Michael and the directors. In an attempt to appease the ring leader of the shareholders, Simone, the board of directors agrees to allow her to purchase stock of the company at below its fair market value. Simone purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Michael and the board members. Under which of the following should Michael and the board of directors defend themselves in an action brought by shareholders for harming the corporation?
The cell type found in nervous tissue is the _________.
The cell type found in nervous tissue is the _________.