Types of business organizations in light of primary concerns

Assignment Help Operation Management

Reference no: EM132179768

John & Marcus have successfully operated a home repair and residential home construction business for the past ten years as a general partnership under the name J&M Home Construction. They trust each other completely. Each allows the other to enter into contracts with vendors and customers without the prior knowledge or consent of the other.

In their business, John & Marcus employ subcontractors for various stages of the work. They have always been very involved on-site at every project. Their personal involvement has assured quality construction.

John & Marcus have decided to transition their business from residential home repair and construction to apartment complex construction and large-scale commercial building construction. They have been approached by several real estate developers to construct these types of buildings.

Both John & Marcus are willing to make substantial, equal monetary contributions to this new enterprise. They will obtain insurance policies in the types and with coverage amounts advised by their insurance agent. Because of the larger scale of future projects, John & Marcus will be less personally involved at each stage of construction and will have to rely more on subcontractors and architects to monitor the quality of work being performed.

In transitioning their business, John & Marcus have the following concerns:

• They want to continue running the business as closely as possible to the manner in which they have operated their J&M Home Construction general partnership with respect to decision-making, day-to-day operation, taxation and distribution of profits; and

• They would like the personal assets they do not contribute to the new venture to be free from claims of creditors if the venture fails or if claims or judgments against the new venture exceed available insurance proceeds and the value of this new venture’s assets.

Discuss the advantages and disadvantages of the following types of business organizations in light of the primary concerns of John & Marcus: (1) Limited Liability Company (LLC); and (2) Subchapter “S” Corporation.

Which is best suited to the needs of John & Marcus?

Reference no: EM132179768

Questions Cloud

What could vinson have done to strengthen her case : In court, Vinson allegations were argued by Taylor version of the facts. What could Vinson have done to strengthen her case.

What are the array of theories : This week you were exposed to an array of theories that should help to jump start your research. What theory have you chosen to help you answer your research.

Backward integrated at the same time : How can a company like Apple be both forward integrated and backward integrated at the same time?

Complete the stockholders equity section : Complete the Stockholders' Equity Section using the following information as of December 31, 20x8. Points will be given for report structure and content

Types of business organizations in light of primary concerns : Discuss the advantages and disadvantages of the following types of business organizations in light of the primary concerns of John & Marcus:

Explanation of medicare in depth : Conclude with offering your viewpoint on how you see the future of Medicare and provide some helpful recommendations.

Respective rights of jane and tom with respect to dirt road : What are the respective rights of Jane and Tom with respect to the dirt road? Who is likely to prevail in a lawsuit commenced by Jane against Tom?

Describe the diagnosis and staging of cancer : Describe at least three complications of cancer, the side effects of treatment, and methods to lessen physical and psychological effects.

Compute sabrita residual income : Sabrita in Mexico is another one of PepsiCo's divisions. Compute Sabrita's residual income, assuming the minimum acceptable rate of return is 30%

User Account

All Pages