The Portable MBA in Finance and Accounting, 3rd Edition

228 Planning and Forecasting prescribed fee. The members then enter into an operating agreement setting forth their respective r ...

Choosing a Business Form 229 This allows creditors and those other wise injured by the operation of the busi- ness to determine ...

230 Planning and Forecasting chapter. Also, formation in Delaware (or any state other than the site of the corporation’s princip ...

Choosing a Business Form 231 Corporations also adopt bylaws, which are not filed with the state but are available for inspection ...

232 Planning and Forecasting OUT OF STATE OPERATION OF CORPORATIONS, LIMITED PARTNERSHIPS, AND LIMITED LIABILITY COMPANIES Thing ...

Choosing a Business Form 233 its partners. As will be seen, especially in the areas of liability and taxation, part- nerships ar ...

234 Planning and Forecasting time to cash in on their efforts as founders and promoters. The survival of the business as a whole ...

Choosing a Business Form 235 of existence by its stockholders. The death, incapacity, bankruptcy, resigna- tion, or expulsion of ...

236 Planning and Forecasting impractical in the case of nonassignable contracts, licenses, and government approvals. Partnership ...

Choosing a Business Form 237 Limited Liability Companies As previously mentioned, although a membership interest in an LLC may b ...

238 Planning and Forecasting be binding upon the partnership and the other partners, regardless of whether such action has been ...

Choosing a Business Form 239 aspects of the corporate form have been designed specifically for the purpose of splitting off indi ...

240 Planning and Forecasting course, be accomplished totally separately from the ownership of securities, through salaries based ...

Choosing a Business Form 241 Directors At the directors’ level, absent a special provision in the corporation’s charter, all dec ...

242 Planning and Forecasting corporation. At the very least, the director must keep informed regarding the corporation’s operati ...

Choosing a Business Form 243 involved in the original decision. The decision of such a committee is much more likely to be uphel ...

244 Planning and Forecasting bind the partnership to unauthorized contracts and torts to the same extent as the partners in a ge ...

Choosing a Business Form 245 Sole Proprietorships With the sole proprietorship, the owner has essentially traded off limitation ...

246 Planning and Forecasting But the stockholders will normally escape personal liability for trade debt and, most important, fo ...

Choosing a Business Form 247 assignment of one’s liabilities to a newly formed corporation does not act to re- lease the origina ...