Income taxes are assessed as personal income for each individual. A general partnership may continue as long as the partners desire to conduct business together. If one of the partners passes away their interest but not ownership is passed on to a personal representative. The personal representative will ensure any profits or surplus left from liquidation of the business are passed to the heirs of the deceased. All partners normally have an equal say in all business decisions.
Congress must agree on a plan, which could take years, and then the market must be weaned slowly from dependence on the companies and the financial backing they provide. The reasons by now are well understood. Fannie and Freddie, created to increase the availability of mortgage loans, misused the government's support to enrich shareholders and executives by backing millions of shoddy loans. Taxpayers so far have spent more than $135 billion on the cleanup. The much more divisive question is whether the government should preserve the benefits that the companies provide to middle-class borrowers, including lower interest rates, lenient terms and the ability to get a mortgage even when banks are not making other kinds of loans.
Consequently, shareholders have no flexibility to alter their legal treatment with respect to one another, with respect to the corporation, and with respect to outsiders” (15-3). However, states provide default provisions for LLC’s and allow members the flexibility to alter arrangements based on their management style and desired outcomes. Corporations also require onerous fees and organizational requirements that must be met. LLC’s have fewer formalities, do not require board meetings and do not impose strict organizational reporting requirements. Tax considerations are also an important part of forming a business and play a significant part when choosing an entity.
Part B: Question 2: Memo Date: June 16, 2015 To: Senior Audit Partner From: CGA As there have been many changes to procedures and operations this year we have noted, based on our discussions and analysis of Vehicles for Hope Limited, the following potential concerns and recommendations: There is an issue regarding a lack of segregation of duties relating to the responsibilities of the accountant. Your accountant seems to be responsible for depositing, holding, distributing and recording all funds and financial records. This poses an increased risk of potential fraud, misstatement or illegal activity as there is only one person in control of handling and recording cash activities. We recommend that the duties of depositing, handling/holding
Many loans didn't require down payments or documented proof of income. Several large investment funds and banks have already taken billion-dollar hits from losses on defaulting mortgages. As policy makers grasped for new options, experts remained divided over how much the plan will ultimately cost taxpayers, who should be held accountable for creating the economic debacle in the first place and whether the rescue plan would prevent a deep recession
Recently, the market is on an uptake with its improving stocks & bonds. The light in a year-plus-long tunnel is bringing both hope and realization. The market improvement is also shedding a truth on a troubling facet of the economy, the 401(K). The realization Stephen Gandel, of “Time Magazine”, has highlighted in his article “Why It’s Time to Retire the 401(k)” focuses on the sad truth that 401(K) is not effective and thus can not be relied on. 401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success.
One manager can order for the week and then alternate each week. This way, if one manager is out ill or for any other issue, there are two others who could handle the ordering with no hiccups in the system. Kathy also needs to hire a full time book keeper who can run all 3 stores until the volume is too large for one person, which it may already be, then each individual store needs to have a finance person. As far as the inventory, they can cut costs by hiring only one person to travel between the three stores with the help of the assistant managers. Everyone needs to be cross trained with every position.
With a sole proprietorship, the owner pays taxes on the income from the business as part of his or her personal income tax. The company does not pay any business taxes. The owner can sell his or her business at any time and does not have to meet a timeframe for owning the business before selling. An owner of a sole
These institutions borrowed billions of dollars to purchase companies they weren’t experts in, allowed no money down mortgages, and used financial devices to calculate exactly how much they could lose if things went wrong so they needed little money on hand in reserve. However, in 2007 and 2008 when interest rates began to rise, asset prices fell, and borrowers couldn’t pay off debts the “Dumb Money era” crashed and burned and took the American economy down with it. The government and taxpayers are now responsible for paying off the $700 billion bank and financial institution bailout, along with many companies needing to shut down and lay off thousands of workers as well. Alan Greenspan appeared before congress in 2009 to discuss that after reevaluating his theories on which the “Dumb Money” era was based on (low interest rates, unregulated markets, and the ability to use debt instruments to manage risk) he found an error in his judgment. Gross believes that if we continue to listen to people like Alan Greenspan, another “Dumb Money” age may
Payday lending is on the verge of being outlawed in the District of Columbia, but the fact remains that consumers will still need access to short-term, emergency loans. Credit unions already are marketing what they call lower-cost alternatives to the traditional payday loans, and consumer finance firms offer products that could be attractive to consumers who have used payday lenders. Even bankers, with a nudge from the Federal Deposit Insurance Corp., might consider getting in on the action. However, there is no guarantee that they can make small-dollar loans profitably. A North Carolina credit union has made more than $800 million of "salary-advance" loans since early 2001 and is still losing money on them.