ESSAY Questions Bus 250 Ch 21-30 Fall 2012

1. What is a limited liability company? Explain the advantages and disadvantages of this type of business ownership?

2. Compare and contrast the following forms of business organization: sole proprietorship, general partnership, limited partnership, limited liability company, and corporation as to ease of formation, liability of owners, management, and tax implications.

3. Andy wants to start his own business. He has decided to rent space in a "strip mall" and open a pet shop. Additionally, he will provide dog grooming services. He figures he can do almost everything himself, though he will need to hire a part-time employee on an "as needed" basis. His friend, Lacy, has agreed to work
Has Trent violated the law? What penalties might he face?

19. James purchased an abandoned lot. When he started to develop the land, he discovered several underground storage tanks containing hazardous waste buried on the site. He claims the seller, Richards, is liable to him for the cost of removing the tanks. Richards claims he owned the lot for 20 years and never knew of the underground tanks. Richards argues he purchased the land from Thomas and that Thomas or his heirs are liable for the cost of removing the underground tanks. Explain whether Richards is liable to James. Does Thomas or do his heirs have any liability to James or Richards?

20. The Trimbles apply to Community Savings & Loan for an installment loan of $20,000 to remodel their bathroom. Discuss the disclosures Community is required to make.

21. Explain the difference between a debit and a credit card and discuss the potential liability for a lost or stolen card.

22. Richard received his credit card bill and noticed an error. He wrote to the company the next week, pointing out the error in his bill. Under the law, what is the credit card's obligation once it receives Richard's letter?

23. Brooke uses her credit card to purchase a lawn mower at the local “big box” hardware store, but when she tries to use the mower for the first time, she finds it is not self-propelled as advertised. Does she have any recourse?

24. Fast Auditors prepared audited financial statements for Mega