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Imagine that you own each of the following businesses:
Tinker's Home Security Service (sole proprietorship)Tinker & Tailor's Home Security Service (general partnership)Tinker & Tailor's Home Security Service (LP)Tinker & Tailor's Home Security Service, Inc. (corporation)Tinker & Tailor's Home Security Service, LLC (LLC)
1. The businesses are being sued for breach of contract. Create a matrix that lists each business, and compare and contrast your personal liability exposure as an owner as a result of the lawsuit.
2. For each business entity, analyze how you might limit your liability exposure as an owner.
3. Describe a business that you may own some day or that you currently own. (Even if you never plan to own a business, pretend as if you will do so for the purposes of this assignment.) Examine the best business organizational form for the business that you have described, including in your examination personal liability exposure, management, taxation, and ease of formation.
Listen to a podcast of Linda Thomsen, former director of enforcement at the Securities and Exchange: "How Sarbanes-Oxley Has Affected Corporate Culture".
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